This Resolution issued by the Internal Revenue Service (SII, from Spanish) in December 2024 places special emphasis on Transfer Pricing (TP) and is aligned with Tax Compliance Law N° 21.713 of September 25, 2024, which provides new tools to the SII to combat informality, evasion, avoidance, and organized crime.
Article 2 of Law N° 21.713 introduces modifications to the Income Tax Law, with its consequent impact on TP, granting greater powers to challenge the prices, values, and profitability declared by taxpayers in transactions between related parties abroad, while allowing unified supervision of all Business Groups, considering their particular characteristics, as they would all initially be included. The audits may be carried out by any Regional Directorate in the country.
In line with Law N° 21.713, Exempt Resolution SII N°120 sets the criteria to consider a case as relevant or of institutional interest, of which at least two of the following criteria must be met:
- Transactions with Related Entities: transactions whose tax effects span more than one (1) tax year,
- International or Cross-Border Transactions: transactions with tax effects that span more than one (1) tax year,
- Patrimonial Dilution or Intergenerational Transfer: transactions resulting in the dilution of assets or their transfer between generations,
- Nationally Transversal Transactions: review of transactions affecting multiple regions of the country, considering factors such as the number of people involved and the exemplary effect of the review.
The aforementioned Resolution will be applicable to cases initiated through the respective notification, from January 1, 2025.
Taxpayers belonging to Multinational Groups and Large Companies in Chile may be subject to more rigorous supervision in Transfer Pricing matters, for which we are in a position to provide a service that allows them to face it in the most efficient way possible. Contact us for more information.