New transfer pricing obligations declarations forms
Si requieres más información, contacta a:
The Chilean Tax authority (SII) has just issued Resolution No. 101 dated 31 August 2020 (hereinafter the «Resolution»), which establishes the obligation to submit two new affidavits regarding Transfer Price Annual Information called «Master File» and «local file» and partially amends Resolution No. 126 of 2016, which establishes the obligation to submit the Annual Transfer Price Information Affidavit.
Thus, the affidavits 1950 for «Master File» and the 1951 for «Local file» are created, which shall be submit as of Tax Year 2021, regarding business year 2020, and will have as a filling deadline the last working day of June of each year.
The affidavit No. 1950
It includes the «Annual Master File Affidavit» and an Annex regarding «Descriptive Information of the Annual Master File Affidavit».
Taxpayers who meet at least one of the following conditions are required to file this retur:
- Parent or Parent Entity of the Multinational Enterprise Group (hereinafter also «MNE Group»), resident in Chile for tax purposes, to the extent that the income of all entities that are part of that group in Chile and abroad, as at 31 December of the reporting year, is at least seven hundred and fifty million euros (€750,000,000).-) at the time of the closure of the consolidated financial statements; or,
- An entity part of or belonging to the MNE Group, which is resident in Chile for tax purposes, and which has been designated by the parent or parent entity of that group as the sole substitute for the latter for the purpose of filing the «country-by-Country Report» affidavit in its country of tax residence, on behalf of the parent or parent entity.
In summary, the Affidavit 1950 establishes the obligation to submit a description of the financial and commercial activities of an MNE Group and its members, as well as the description of activities related to intangibles, among other aspects.
The Affidavit No. 1951
It includes the «Annual Local File Affidavit» and an Annex regarding «Descriptive Information of the Annual Local File Affidavit».
Taxpayers who copulatively meet the following conditions are required to file this return:
- Belong to the segment of large companies; according to the criteria set out in exempt resolution SII No. 76 of August 23, 2017;
Its parent or parent entity of the MNE Group has been required to submit the country-by-Country Report to the Internal Revenue Service or other world Tax Authority for the respective tax year; and,
- that in that year have carried out one or more transactions with related parties that have no domicile or residence in Chile, in accordance with the rules established in Article 41 E of the law on Income Tax, in amounts exceeding CLP 200,000,000.
In summary, the Affidavit 1951 establishes the obligation to submit a detailed information of the intercompany operations that exceed the mentioned amount. In the case of financial or credit operations, the reporting is mandatory regardless of the amount.
Failure to comply with these obligations will be sanctioned with a fine of 1 to 50 Annual Tax Unit (UTA) in accordance with Article 41 E (6) of the Income Tax Law.
“El presente Boletín no constituye asesoría legal y el estudio Guerrero Olivos no será responsable por actos u omisiones de terceros basados en la información contenida en él”.