Spanish to English Bus/Financial Accounting

This is part of a question in a tax return and financial statement presentation form from Ecuador called Formulario Único de Sociedades y Establecimientos Permanentes.

Here goes the question in a line: ¿Sujeto pasivo exento de aplicación del régimen de precios de transferencia?

Above this line is the section with items relating to domestic and offshore related-party transactions, and below is the "Estado de Situación Financiera).

"aplicación" is the part leaving my head spinning as there are different meanings (none of which I can think would fit in this context other than perhaps "enforcement"):

"Taxpayer exempt from observing price transfer (tax) rules?"