Annual Transfer Pricing Statement (DJ 1907)
Santiago de Chile, April 26, 2023
The Annual Transfer Pricing Declaration (DJ 1907) was incorporated by means of Exempt Resolution No. 14-2013 and its amendments, where the taxpayer must report compliance with the transfer pricing regulations in June of each year as of tax year 2013 Currently said statement does not require attaching a Technical Study of Transfer Pricing; however, taxpayers must keep said documentation in case the Internal Revenue Service (SII) requires it, since they can obtain a fine for not presenting it.
This Transfer Pricing Study is important because it allows the SII to evaluate the legitimacy of the results in the transfer pricing operations used by the taxpayer and reported through DJ 1907. On the other hand, it allows demonstrating that reasonable measures have been taken to guarantee that its transfer pricing policies comply with local regulations, guaranteeing that the company obtains a benefit according to market value policies, obtaining the maximum value from its international operations, maximizing its benefits and minimizing its costs.
In conclusion, the Transfer Pricing Study as a necessary document for the Annual Declaration (DJ 1907) is an important component, it is already demonstrated before the Tax Authority, if the operations agreed with related parties comply with the market value rules established in the Income Tax Law.
For more information, contact us at rserrano@tpconsulting.com or by phone (56-2) 2944-5015.
