The Chilean Internal Revenue Service (IRS) has released Circular No. 29 on June 14, 2013 that includes instructions regarding the new transfer pricing rules introduced by Law 20,630.
The circular recognizes the OECD TP Guidelines as a valid source of interpretation. The circular specifies that for a 35% fine will be imposed on transfer pricing adjustment. The determination of the taxpayer’s net taxable income, its FUT (Taxable Profits Registry) or owner’s equity may not be affected by this fine.
