Chilean Companies Advance in Social Tax Responsibility

May 20, 2024

The SII and the Creation of Social Tax Responsibility Indicators

The Internal Revenue Service (SII) has convened Chile’s main business groups to develop indicators of social tax responsibility (RST). This effort seeks 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 play a crucial role in its implementation.  

Importance of RST Indicators

RST indicators help companies to adopt good practices in tax sustainability, improving their reputation and transparency. The SII, together with the Catholic University of Valparaiso, is leading 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 trust in society and be role models in the tax field. Companies that already use international tools such as the Global Reporting Initiative (GRI) are well positioned to adopt these new standards.  

RST 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 that are associated with the field of Transfer Pricing, such as Advance Pricing Agreements (APA), the presentation of the Sworn Statement 1937, 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 becoming more and more valued, TPC Group can help you navigate 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