Taxpayers who are engaging in transactions with entities domiciled abroad will have to agree with the new transfer pricing compliance requirements. Taxpayers will have to submit the Transfer Pricing (TP) annual information return form to the Chilean Internal Revenue Service (SII). The Information return will have to be filed by the last day of June each year subject to transactions undertaken in the previous year.
Taxpayers who are required to submit the Information return are:
- Taxpayers who identified as medium or large sized companies as of December 31 (of the concerned reporting year) and who carried out transactions with related parties which are neither resident nor domiciled in Chile;
- Taxpayers not alike the above category and who entered into transactions with persons who are either resident or domiciled in the countries referred to in Article 41 D of Income Tax Laws i.e. tax haven countries; and
- Taxpayers not falling in the above categories and who carry out transactions with foreign related parties for amounts crossing CLP$ 500,000,000 (five hundred million Chilean pesos) or its equivalent in foreign currency as of December 31 of the relevant year.
