New Transfer Pricing Information Affidavits
Santiago de Chile, May 12, 2023
The new Transfer Pricing Information Sworn Statements were incorporated by Resolution Ex. No. 101, published by the Internal Revenue Service (SII) on August 31, 2020. Said statements must be submitted through Form No. 1950, called “Annual Sworn Statement Master File” and Form No. 1951, called “Annual Sworn Statement Local File”, according to the format and instructions contained in said resolution.
These statements complement Affidavit No. 1937 (Country by Country Report), and Affidavit No. 1907 (Transfer Pricing), as a measure to align with OECD recommendations and BEPS action 13 (for its acronym in English). “Base Erosion and Profit Shifting”).
These Declarations are important because they allow the SII to evaluate in a more exhaustive way if the operations carried out by the Taxpayer comply with the market value norms, by presenting information not only of the taxpayer in Chile, but also information of the multinational group.
In conclusion, the incorporation of these declarations is an important step for the regulation of Transfer Pricing in Chile, since it will allow demonstrating before the Tax Authority, if the returns obtained by the taxpayer are in accordance with the functions and risks assumed within the multinational group.
For more information, contact us at rserrano@tpconsulting.com or by phone (56-2) 2944-5015.
