Transfer Pricing (Affidavit 1907)
At CFA we advise on Transfer Pricing matters and especially on the duty to comply with Affidavit 1907.
Advice on Transfer Pricing Regulation
We prepare legal and tax reports regarding the regulation and compliance duties related to Transfer Pricing, which implies analyzing and reviewing the corresponding applicable affidavits, an analysis and presentation of the Circulars, resolutions and official letters issued by the Chilean Internal Revenue Service ( “SII”) on broad subjects and approach regarding the regulation established by the Income Tax Law in article 41 E.
We provide our services in Transfer Pricing, providing advice regarding Chilean regulations on Transfer Pricing, mainly derived from Law No. 20,630, an old reform of the Chilean tax law, which introduced transfer pricing rules in the Income Tax Law based on the regulations of the Organization for Economic Cooperation and Development (OECD), of which Chile is a part.
Issuance of the Affidavit N°1907
We provide guidance and preparation of Form 1907 Transfer Pricing Affidavit to be sent to Chilean SII, analyzing all the requirements and aspects of this affidavit, and if necessary we provide practical examples as an introduction.
The foregoing also includes providing a detailed description of the existing Transfer Pricing Methods and especially regarding the suggested method according to the business model.
In Form 1907, the method used to analyze the operation carried out with the related company must be indicated, taking as reference the transfer pricing methods established by the Organization for Economic Cooperation and Development (OECD), in its Transfer Pricing Guidelines, for multinational companies and tax authorities.
Transfer Pricing Study and Report
At CFA we can also support your business with a study on transfer pricing, importance and relevance in Chile and regulation in this regard.
We also advise regarding the sanctions against breaches established in the Income Tax Law and in the Circulars issued by the SII, either due to omission in the issuance of the 1907 Affidavit, errors or inspections in this regard.