Sep 21, 2026
By MAF. Gabriela Páez
Tax Manager – EAS LATAM
In transfer pricing, risk does not end once a return is filed. The General Directorate of Taxation may review both the formal reporting obligation and the evidence supporting related-party transactions. It is therefore helpful to distinguish among three scenarios: failing to file the information return, failing to respond to a documentation request, and facing a tax adjustment because a transaction does not meet the arm’s-length standard.
Failure to File—or Incorrectly Filing—the Information Return
Resolution MH-DGT-RES-0026-2025 refers taxpayers to the penalty regime under the Tax Code. For a complete or partial failure to provide information, Article 83 establishes a penalty equal to 2% of gross revenue for the income tax period preceding the period in which the violation occurred, subject to a minimum of three base salaries and a maximum of 100 base salaries.
If the information is submitted within three days after the deadline, the penalty is reduced by 75%. When records contain errors, the rule provides for a penalty equal to 1% of the base salary for each incorrect record, capped at the maximum penalty applicable under the first paragraph of Article 83.
Local File and Information Requests: The Risk Lies in Obstructing Oversight
An important clarification is warranted: there is no specific penalty of one base salary merely for “not having a Local File.” Transfer pricing documentation must, however, remain available to the Tax Administration. If the General Directorate of Taxation requests the information and the taxpayer fails to provide it, provides only part of it, or does not comply with a duly served request, the general penalties under the Tax Code may apply depending on the nature of the violation, including those established in Articles 82 and 83.
The information reported and the technical support should tell the same story.
For information requests under subsection (b), the response period may not be less than 10 business days and may be extended at the taxpayer’s request, subject to approval by the Tax Administration.
Tax Adjustments: The Cost May Exceed the Formal Penalty
If the General Directorate of Taxation concludes that a related-party transaction does not reflect arm’s-length conditions, it may adjust revenue, costs, or deductions and recalculate the corporate income tax base. The additional tax is computed at the rate applicable to the taxpayer; it is not always accurate to refer to a universal 30% rate.
If the adjustment results in an underpayment of tax, the inaccuracy may be subject to Article 81 of the Tax Code. The standard penalty starts at 50% of the applicable penalty base, without prejudice to the legal characterization of the case or any available reductions. Interest also accrues. In addition, if a tax assessed by the Administration is paid after the statutory deadline, Article 80 provides for a late-payment penalty of 1% per month or fraction of a month, up to a maximum of 20%.
Correcting an Issue Promptly Can Make a Difference
Article 88 of the Tax Code provides for reductions of certain penalties, including those under Articles 81 and 83. The reduction depends on when the taxpayer corrects the issue and, in some cases, on whether the taxpayer self-assesses and pays the penalty.
These reductions do not turn noncompliance into a strategy; they are intended to encourage voluntary remediation. The best defense remains ensuring that the return, study, and accounting records are consistent before an information request arrives.
What Should a Company Review Today?
Confirm whether it is required to file the Information Return.
Reconcile reported amounts to the accounting records, income tax return, electronic invoicing, and intra-group agreements.
Maintain technical support for the methods, comparables, and adjustments used.
Document intra-group services, loans, guarantees, royalties, and other sensitive transactions with particular care.
Monitor notifications in TRIBU-CR and assign internal responsibility for responding to requests on time.
In conclusion, a transfer pricing exposure may begin as a formal compliance failure and end in a substantive dispute over the taxable base. An accurate return, readily available technical support, and a clear audit trail for related-party transactions reduce penalty risk and strengthen the taxpayer’s position during an audit.