On July 1, 2020, the deadline determined by the Internal Revenue Service (SII) for taxpayers obliged to submit the Tax Return on Transfer Prices corresponding to the 2019 business year expires. For which, they must use the available Form No. 1907 on the SII web portal.
Obliged taxpayers
Taxpayers classified as Medium or Large Companies and who have carried out operations with related parties that do not have domicile or residence in Chile.
Taxpayers who have carried out operations with related parties without domicile or residence in Chile, including also those operations carried out with persons domiciled, residents, established or incorporated in a country, territory or jurisdiction that has a preferential tax regime, in both cases, for amounts greater than $ 500,000,000 (five hundred million Chilean pesos) or its equivalent in foreign currency.
Operations to be declared
The operations to be declared correspond to those carried out during the reported business year and those with outstanding balances for the same period.
Transfer pricing studies or reports
Taxpayers may accompany a transfer pricing study that accounts for the determination of prices, values or profitability of their operations with related parties.
Fines and penalties
The fines for not presenting this declaration within the term or in an erroneous manner range from 6 to 30 million Chilean pesos. If the declaration is presented in a maliciously false manner, the corresponding fine is 50% to 300% of the value of the tax evaded.
Likewise, if the taxpayer cannot prove that the operations with its related parties have been carried out at normal market prices, values or returns, the SII has the power to determine adjustments using the evidence available.
Articles 41 E and 41 H of the Income Tax Law.