Resolution No. 14 of 2013 has been issued by the Chilean Internal Revenue Service (Chilean IRS) that contains the new Transfer Pricing Annual Informative Return for calendar year 2012 and the proper completing instructions. The deadline for filing the Informative Return is June 28, 2013. The taxpayers will have to be submitted Transfer Pricing Annual Informative Return (Form No. 1907) to the Chilean IRS by as listed below:

• Taxpayers that complete cross-border intercompany transactions during 2012 and are sorted as medium or large companies.
• Other than the taxpayers those classified by the Chilean IRS as medium or large companies that carried out transactions with persons domiciled or resident in countries or territories took into account tax havens or preferential tax regimes during 2012.
• Taxpayers, other than medium and large companies that carried out transactions with overseas related parties for amounts exceeding $500,000,000 (USD 1,040,000) or equivalent in foreign currency during 2012.

Failure to file the Transfer Pricing Annual Informative Return in the time and manner established by the Chilean IRS will result in a penalty between USD 10,000 and USD 50,000. In addition to requesting specific information, the Transfer Pricing Annual Informative Return needs whole information per type of transaction (i.e. tangible goods transactions, financing transactions, actions arising from the use of intangible assets, and rendering of services or commissions). Taxpayers will have to provide information regarding the transfer pricing method applied by the local taxpayer in validating the arm’s length nature of these inter-company transactions.