The SII and the Creation of Social Tax Responsibility Indicators
The SII (Servicio de Impuestos Internos – Internal Revenue Service) has convened Chile’s main business groups to develop indicators of social tax responsibility (STR). This effort intends to encourage tax compliance through 95 indicators in collaboration with companies, academics, and the tax administration. The proposal was presented to representatives of 34 large holding companies, who will be crucial in its implementation.
Importance of STR Indicators
STR indicators help companies adopt good practices in tax sustainability, improving their reputation and transparency. The SII is leading, along with the Catholic University of Valparaiso, this initiative to build a common language between taxpayers and tax authorities.
Benefits for Companies
Participating in this project allows companies to highlight their commitment to social responsibility, generate social trust, and be role models in the tax field. Companies already employing international tools, such as the Global Reporting Initiative (GRI), are well-positioned to adopt these new standards.
STR and Transfer Pricing
The SII has been promoting as a key element of the work with Business Groups the issue of social tax responsibility, from the development of initiatives associated with the Transfer Pricing field, such as Advance Pricing Agreements (APA), the Affidavit 1937 filing, called Country by Country Report, as well as other measures and/or tax collaboration agreements.
Improve your Transfer Pricing Strategies with TPC Group
Given the above, and considering that social tax responsibility is increasing its value, TPC Group can assist you in navigating these new standards. Contact us to strengthen your Transfer Pricing strategies and comply with the highest levels of tax transparency.
Source: Servicio de impuestos Internos
