EDITORIAL

DEAR READER:

In this edition, we thought it would be relevant to discuss an issue with you that continues to be current, which is the transfer pricing regime, due to its timeliness, complexity, and impacts.

We are close to the deadline for submitting the Tax Authority with the information required by that regime (annex and integral report), since we must file this documentation in June and its content has to be prepared technically, through research and identifying comparables in the economic and strategic environment, whether locally or internationally. Failure to abide by this deadline will result in significant fines.

The following articles are meant to present the background which led to the existence of this regime, the goals that the Tax Authority is pursuing with this regime, the transactions that it applies to and the existing laws and regulations that govern it.

We hope that this information will be useful, since beyond the fact that taxpaying entities that engage in transactions with local or foreign related parties are obliged to submit these reports, in some cases, this exercise could lead to opportunities to maximize results, minimize risks and make the company's operations more efficient.