The mining sector is a major source of income for many countries in Latin America and the Caribbean. An efficient management of the income generated by this activity can generate the resources needed to address the responsibilities of States. However, given the volume of transactions, amounts and tax particularities, exercising control over such movements is particularly challenging.

For this reason, the GIZ, together with CIAT, conducted a training program on transfer pricing in the mining sector, which had as its general objectives:

• To know the different methods of transfer pricing analysis used by the countries of Latin America and the Caribbean.
• Identify the main challenges of transfer pricing in the mining sector that the countries of the region face, and their answers.
• Identify models of analysis and risk assessment in the mining sector.
• Determine the different components forming part of value chain of in the mining sector.

The training program on Transfer Pricing in the mining sector included a virtual component, which proposed an introduction to the subject of transfer pricing determination methods, compatibility and administrative control aspects concerning transfer pricing. In addition, the whole issue of the value chain in the mining industry was treated. The program concluded seeing the different transfer pricing risks in this sector. This component was conducted from March 08 to May 25, 2018.

From May 28 to 30, an event was held in Panama, attended by officials from the tax administrations and ministries in charge of the mining sector in Argentina, Brazil, Chile, Peru, Bolivia, Colombia, Ecuador, El Salvador, Guatemala, Mexico, Panama, Paraguay, Peru and Rep. Dominican. The issues of value chain and its inherent risks, the risks of transfer pricing and BEPS in the mining sector were deepened; In addition, the situation of mining in Argentina, Colombia, Chile and Peru was presented.

This face-to-face event was attended by the CIAT Director of Cooperation and International Taxation, Gonzalo Arias; the Technical Advisor of GIZ in Chile, Victor Garzon; and experts Solange Lizewski, José Madariaga and Alexandra Readhead

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