The Chilean SII (Servicio de Impuestos Internos – Internal Revenue Service) has successfully implemented Advance Transfer Pricing Agreements (APAs), securing over US$ 647 million in tax collection. This strategy has ranked Chile as a leader in Latin America in implementing these agreements, reflecting taxpayers’ confidence in the Chilean tax administration.
Updating of APA Procedures
Due to the enactment of Law No. 21.713, the SII updated the APAs filing procedure through exempt Resolution No. 28 of March 2025. These agreements allow taxpayers performing related party transactions abroad to establish in advance criteria to determine prices, values, and returns, effective for five years from their subscription. Likewise, these APAs can be applied retroactively for a maximum of three years, providing greater certainty and tax security for companies.
Specialists in the subject ensure that guaranteeing a good relationship between taxpayers and the SII could even reduce audits, highlighting the costs and time involved therein, along with a considerable improvement in tax compliance at all levels by applying preventive and facilitating measures.
Benefits and Results of APAs in Chile
To date, 36 APA applications have been received, with 17 signed by taxpayers in sectors such as retail, mining, and the food industry. These signatures have enabled the SII to secure a collection of US$ 647,094,335, equivalent to $317,063,953,985. This mechanism provides legal and tax certainty to taxpayers for a more favorable tax environment for investment while strengthening the relationship between taxpayers and the SII, reducing uncertainty, and enhancing mutual cooperation.
Key Modifications in the APAs’ Procedure
Law No. 21.713 significantly modified the APA procedure, including a “prior consultation” that allows taxpayers to request the SII for a preliminary assessment of the viability of a request before its formal filing. In addition, the agreement deadline was extended from four to five years from its subscription, while the background information to be included in the request was specified to streamline and make the process more efficient. These modifications aim to facilitate the APAs’ application and strengthen tax certainty for taxpayers.
Conclusion
The implementation and updating of Advance Transfer Pricing Agreements in Chile have been demonstrated to be an effective tool to ensure tax collection and provide tax certainty to taxpayers. These advances reflect the SII’s commitment to modernization and efficiency in tax administration.
For further scope on Advance Transfer Pricing Agreements and their benefits, the official site of the SII maintains a dynamic and informative platform for correctly applying the regulations.
Source: SII