Chile has taken an important step forward in the area of international taxation and the oversight of transactions between related parties with the publication of Exempt Resolution No. 204 of 2026, issued by the Internal Revenue Service (SII). The new regulation introduces a joint procedure between the tax authority and the National Customs Service (SNA) for the review of Advance Pricing Agreements (APAs) applicable to import transactions.
This new framework is particularly significant in the area of Transfer Pricing, as it seeks to align customs valuation with pricing under the arm’s length principle, thereby reducing inconsistencies and the risk of double adjustment in international transactions.
Transfer Pricing and Customs Valuation: An Increasingly Relevant Relationship
Import transactions between related companies represent one of the main focuses of tax audits globally. Traditionally, tax and customs authorities have evaluated these transactions using different approaches:
- Tax authorities analyze whether the agreed-upon price complies with the arm’s length principle.
- Customs authorities verify whether the value declared to customs correctly reflects the import value in accordance with customs valuation rules.
This difference in criteria can lead to significant conflicts for taxpayers. In many cases, one authority may consider the price too low while another considers it excessive, resulting in simultaneous adjustments and increased tax liabilities.
In this context, coordination between both authorities has become an international trend driven by the OECD and multilateral organizations.
The new joint APA procedure in Chile
Exempt Resolution No. 204 establishes that APA applications related to imports must be submitted to the SII but reviewed in coordination with the National Customs Service.
Each authority will evaluate the transaction according to its respective jurisdiction:
- The SII will analyze the Transfer Pricing methodology and compliance with the arm’s length principle.
- Customs will review the correct customs valuation of imported goods.
This new mechanism aims to prevent conflicting determinations regarding the same intra-group transaction, providing greater legal certainty to multinational companies with international supply chains.
Greater Documentary Requirements and Economic Substance
The new procedure requires taxpayers to submit robust technical documentation, including:
- Local Files for Transfer Pricing.
- Intercompany agreements.
- Financial statements.
- Organizational structure of the group.
- Functional analysis.
- Comparables.
- Customs valuation methodologies.
- Tariff classifications.
The measure reflects an international trend where the mere formal existence of contracts or basic documentation is no longer sufficient. Authorities increasingly require proof of the economic substance of transactions and consistency between commercial reality and agreed-upon prices.
Additionally, the procedure includes an optional pre-filing consultation phase, allowing taxpayers to assess the feasibility of the APA before formally submitting the application.
Legal certainty and reduction of tax risks
One of the most significant aspects of the new system is that, once the APA is approved:
- The SII may not subsequently challenge the Transfer Pricing of the covered transactions; and
- Customs may not challenge the customs value determined in accordance with the agreement.
This generates significant benefits for multinational groups, particularly in terms of:
- Tax predictability;
- Reduction of litigation;
- Decreased risk of double adjustment;
- Strengthening of international compliance; and
- Stability in financial and operational planning.
In addition, the regulations provide for the possibility of retroactive application of the agreements for up to three prior tax years, without the imposition of fines or interest associated with certain Transfer Pricing adjustments.
Chile and the international trend toward tax integration
The implementation of joint APAs between tax and customs authorities reflects a significant evolution in international tax enforcement.
The OECD has repeatedly highlighted the need to strengthen consistency between customs valuation rules and Transfer Pricing, particularly in import transactions between related parties. In an environment of increasing tax transparency and international cooperation, taxpayers must strengthen their internal valuation, documentation, and control policies.
The Chilean case demonstrates how tax administrations are shifting toward more integrated oversight models, focused on economic substance, traceability, and the financial consistency of intra-group transactions.
In this context, having technically sound Transfer Pricing policies aligned with international standards will be key to mitigating tax risks and ensuring legal certainty in cross-border transactions.
At TPC Group, we have Transfer Pricing specialists ready to assist multinational companies in implementing valuation policies, conducting economic analysis, and ensuring compliance with international standards aligned with OECD guidelines and regional regulations.
Source: BCN