The Tax Authority of Chile published Resolution 126 on 27th December 2016 to implement country-by-country (CbC) reporting. It requires specific taxpayers to submit an annual report to the tax authority disclosing the level of income, profit or loss before taxes and the income tax amount paid in each jurisdiction by large multinational companies satisfying specific requirements. Reporting must follow a standard model and the report must be submitted using new transfer pricing form (Form No. 1937) annually as at 30 June. The following taxpayers are obliged to submit the CbC report: resident parent entities forming part of a multinational companies group (MCG), to the extent that the income of the group of entities which is part of the MCG for the last 12 months’ period is at least EUR 750 million (based on the exchange rate as at 31st December of the previous year) at the time of the closing of the consolidated financial statements; or resident entities belonging to the MCG which have been elected by the parent entity of the MCG as the sole representative due to file the “Country By Country Report” affidavit in the name of the parent or controlling entity.
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