Transfer Pricing should be in accordance with OECD guidelines

In Article 41, letter E, the Income Tax regulations state the Transfer Price Standards, which is in line with the OCDE Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations.

According to this article, cross-border operations performed by the taxpayers established in Chile with branches related abroad must be performed according to market prices for any traded good, provided service, or accrued operation among both parties.

Transfer Prices documentation

The regulations specify that the company may accompany or maintain at the disposal of such Tax Administration, a master and/or local report on the transfer pricing that reflect the establishment of the pricings, values, or profitability of their operations with branched related abroad.

·        It is a document that supports the affidavits on transfer prices and the transfer pricing method reported according to every analyzed transaction.

·        The market in which the company operates is contextualized.

·        It contains an economic analysis of the method developed and reported in the affidavits.

·        It contains information on the multinational/global group.

It should be noted that the tax administration is authorized to contest the respective prices, values, or profitability reported by the taxpayer. Additionally, the information to be provided must be adjusted to one of the transfer pricing methods established by the law; otherwise, the contributor is to be contested by the local authority.

Article 33 bis of the Tax Code of Chile establishes that, in virtue of the relating legal or administrative dispositions, the Chilean Internal Revenue System (SII) is entitled to request from taxpayers affidavits on their operations and to provide documents or precedents as reports respective contracts and/or invoices for which a founded resolution must be issued to request reports or declarations on particular matters and information on the taxpayer or other parties.

Transfer Pricing methods

The regulations refer to the methods to be applied that are in line with the OCDE Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations, where the taxpayer may choose the most convenient one, according to the circumstances. The methods are defined as follows:







The regulations indicate that the taxpayers must annually file an affidavit presenting the information required by the tax administration. The requirements that the taxpayers shall submit are the ones that are domiciled, residents or established in Chile and that perform cross-border operations with its branches abroad, including the corporate reorganizations and rearrangements of branches located in different jurisdictions.

The tax administration may request the taxpayers to provide information on the following:

a)     Operations considered in this form, such as sale and purchase of hard goods, financing operations, operations derivated from the use of intangible assets, service delivery and/or commissions, alienation of property, etc.

b)     The transfer pricing methods are applied to every analyzed operation.

c)     Information on their branches abroad and general information of the corporate group.

d)     Annual price adjustment on transfer pricing.



The Annual local affidavit, which must contain specific information regarding the significant operations performed by the local taxpayer, is to be filed by the taxpayers who, by the 31st day of December of the year in which the affidavit is filed, have to met the following copulative conditions:

a)      They must belong to the large companies segment,

b)     The parent or controlling branch of the Multinational Corporation must have submitted the Country-by-Country Report before the SII (Chilean Internal Revenue System) or another Tax Administration for the respective year, and

c)      That during that year, they have performed one or more operations with related branches abroad who are not domiciled or residing in Chile, according to the guidelines mentioned in Article 41 E on the Income Tax Law, for a sum that exceeds 200 million CLP.


The Master Affidavit File that contains standardized information regarding the group of the branches in the multinational group must be filed by the following taxpayers:

a)      The parent or controlling branch of the Multinational Group which owns a residence in Chile for taxation purposes, as long as the income of the whole body of entities belonging to the group in Chile and abroad is, by  the 31st day of December of the filled year, at least equal to 750 million Euros at the time of closure for the consolidated financial statements, according to the  currency observed in January 1st, 2015, established by the Central Bank of Chile according to N°6 in Chapter I of the Compendium of International Exchange Regulations; or either

b)     The entity that integrates or belongs to the Multinational Group with residence in Chile for taxation purposes and that has been designated by the parent or the controlling entity of the group as the only substitute to file the Affidavit Country-by-Country in its tax residence country, on behalf of the parent or controlling entity.

The due date to submit the affidavits on transfer pricings before the tax administration is the last business day of June of every taxable year. The operations performed in the previous business year are also considered.

Non-compliance with these obligations (affidavits, annexes, and documentation) shall be penalized according to N°6 in Article 41 E of the Income Tax Law.

Scroll to top