TP policy in Chile
October 08, 2007
Sergio Illanes, Miguel Zamora and Ana Paula Güitrón of Baker & McKenzie summarise the key points of the Chilean transfer pricing regime
Transfer pricing requirements
Arm's-length pricing
Pursuant to article 64 of the Tax Code the taxing authority (Servicio de Impuestos Internos (SII)) is empowered to contest prices used by parties when such prices are the tax base or one of the elements used to compute a tax and if they are below market values. In addition, article 38 of the Chilean Income Tax Law (CITL), allows the SII to conduct audits, request specific information and contest prices charged, paid, or accrued between related parties if such prices do not comply with the arm's-length principle.
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