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Chile: Customs allows transfer pricing valuation, as established by APAs

Chile: Customs allows transfer pricing valuation

An amendment to Chile’s customs rules allows the value of imported goods to be determined according to the valuation established by an advance pricing agreement (APA) as granted under the transfer pricing measures.

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Taxpayers who enter into transactions with foreign related parties may apply for an APA in order to establish the fair market value (market price) of the transaction or imported merchandise. To harmonize the customs regulations with the transfer pricing measures, the customs rules have been amended so that the transaction value, as established and approved pursuant to an APA, also applies for customs purposes.

 

Read an August 2018 report (Spanish) prepared by the KPMG member firm in Chile

Bolivia, Panama removed from countries on “preferential tax regime” list

The SII updated the list of countries and jurisdictions that are considered to have a “preferential tax regime” and removed Bolivia and Panama from the list. 

Taxpayers must file Form 1907 (Spanish) [PDF 258 KB] if during the tax year, they have engaged in transactions with parties that are domiciled, have residency or are established or incorporated in a territory or jurisdiction that is considered to have a “preferential tax regime” pursuant to the list prepared by the Chilean tax authorities. The list includes countries or jurisdictions that are not members of the OECD and that do not comply with standards of transparency and exchange of tax information. The list serves, for example, to determine a party’s transfer pricing obligations, and requires additional withholding (at a rate of 30% for royalties and 20% for technical services) on payments made to entities located in countries on the list.

 

For more information, contact a tax professional with KPMG’s Global Transfer Pricing Services practice in Chile:

Juan Pablo Guerrero Daw | + 56 2 2798 1427 | jguerrero1@kpmg.com

For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:

Doug Zuvich
Partner, Global Practice Leader
T: 312-665-1022
E: dzuvich@kpmg.com

Andy Siciliano
Partner, National Practice Leader
T: 631-425-6057
E: asiciliano@kpmg.com

Irina Vaysfeld
Principal
T: 212-872-2973
E: ivaysfeld@kpmg.com

Robert Waldrop
Principal
T: 212-954-8117 
E: rwaldrop@kpmg.com

Christopher Young
Principal
T: 312-665-3229
E: christopheryoung@kpmg.com

George Zaharatos
Principal
T: 404-222-3292
E: gzaharatos@kpmg.com

John L. McLoughlin
Principal, East Coast Leader
T: 267-256-2614
E: jlmcloughlin@kpmg.com

Luis (Lou) Abad
Principal, WNT
T: 212-954-3094
E: labad@kpmg.com

Amie Ahanchian
Managing Director
T: 202-533-3247
E: aahanchian@kpmg.com

Gisele Belotto
Managing Director
T: 305-913-2779
E: gbelotto@kpmg.com

Andy Doornaert
Managing Director
T: 313-230-3080
E: adoornaert@kpmg.com

Jessica Libby
Managing Director
T: 612-305-5533
E: jlibby@kpmg.com

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