An Advance Pricing Arrangement (APA) can be requested by taxpayers resident or domiciled in Chile who carry out cross-border transactions with related parties abroad, as stipulated in Article 41 E of the Income Tax Law, for all or part of their related transactions, as determined by the taxpayer.

Taxpayers engaged in transactions with related parties, for the purposes outlined in Article 41 E No. 7 of the Income Tax Law, must submit a request including a description of the respective transactions, their arm's length prices, values, or returns, and the period that the respective advance pricing arrangement should cover, along with the information specified in Exempt Resolution No. 68 of 2013.

Additionally, the taxpayer must expressly indicate in the request whether they authorise the SII to publish the criteria, economic, financial, and commercial reasons, among others, and the methods that will serve as a basis for a potential agreement.

To submit the request, the taxpayer must access the website www.sii.cl, through the Online Services menu, selecting the option Income Statement / Advance Pricing Arrangements (APA), enter their RUT (Tax Identification Number), and authenticate themselves using their clave tributaria, clave única or any other authentication mechanisms that may be implemented in the future. Prior to this, the user must request enrolment to access the system and attach the necessary documentation to resolve the request.

The SII, through Exempt Resolution 114 of 2022, has established a special enrolment method for taxpayers to submit APA requests. It is a system accessible on the website www.sii.cl, through the Online Services menu, selecting the option Income Statement / Advance Pricing Arrangements (APA). Through this system, enterprises must provide all the required information specified in Exempt Resolution 68 of 2013, as well as any additional information deemed necessary for the submission. They can also consult the status of their documentation and attach any information that may be requested by the SII during the procedure.

It is important to note that this enrolment process is distinct from the one related to the request for electronic notifications specified in the first section of Article 11 of the Tax Code.

Any notifications issued by the Servicio de Impuestos Internos within the APA procedure follow the general rules stipulated in Articles 11 to 15 of the Tax Code.

To request enrolment, the taxpayer should follow these steps:

• Send an email to the address area.apa@sii.cl with the subject “Enrolment Request”.
• The email should identify the taxpayer requesting enrolment, with their business name and RUT (Tax Identification Number).
• If the enrolment request is being made by a representative of the taxpayer, the mandate or power that authorises them to make this submission must be attached, whether it is a public or private instrument. For natural persons, a copy of their identification card must be attached.
• Subsequently, the taxpayer will receive an email from the SII informing their enrolment. Enabling them to access the system using the taxpayer's RUT and clave tributaria.

The APA will be considered submitted once the taxpayer uploads their request and the minimum required information outlined in Exempt Resolution 68 of 2013 to the provided system.

To involve foreign tax authorities in an APA, the taxpayer must explicitly require it in their request.

In this situation, the taxpayer must provide all documentation supporting the request, as well as any information that may have been provided to the foreign tax authority(es) within the framework of the APA request.

Once all the specified documentation is received, the Servicio de Impuestos Internos will analyse the proposal and its merits. If deemed appropriate, the SII will contact the respective foreign tax administrations to arrange meetings and discuss the advance pricing arrangement request.

If applicable, the total or partial acceptance of the request will lead to the signing of an agreement. The SII will then inform the corresponding tax administrations about the signing of the agreement.

Advance Pricing Arrangement (APA) requests can be submitted whenever the taxpayer deems it convenient.

No, in Chile no fee or tax must be paid to submit an Advance Pricing Arrangement (APA) request.

The following information must be submitted:

a)  Identification of the related persons or entities who will engage in the transactions referred to in the respective request.
b)  Specification of the period that the agreement should cover.
c)  Corporate structure of the business group to which the enterprise belongs, including parent companies, controlling entities, subsidiaries, agencies, or directly or indirectly related parties abroad.
d)  Eight-column General Balance Sheet at the sub-account level, on numbered paper, stamped by the Servicio de Impuestos Internos and signed by the Legal Representative of the entity requesting the arrangement, covering the two fiscal years preceding the submission of the request.
e)  Audited financial statements and their explanatory notes from the entity requiring the arrangement, if issued and audited in due time, for the two fiscal years preceding the submission of the request.
f)  Copies of contracts for transactions with related parties abroad that are relevant to the arrangement request, along with a simple translation into Spanish if applicable. These contracts may concern the distribution, production, use and licensing of intangible assets, financial transactions, and service provision, among others.
g)  Identification of the holders of intellectual property rights such as patents, trademarks, or other intangible assets that directly or indirectly affect the transactions related to the advance pricing arrangement request.
h)      Information regarding any other advance pricing arrangements or mutual agreement procedures entered into or in progress concerning entities within the group that directly or indirectly relate to the transactions specified in the advance pricing arrangement request.
i)  Must include a transfer pricing study.
j)  Any other information that the taxpayer considers relevant for the analysis of the transactions included in the submitted request.

1. A detailed description of the transactions subject to the request, the functions or activities performed, the assets, and the risks assumed by the various related parties involved in the transactions of the agreement.
2. Additionally, if the taxpayer is part of a multinational enterprise group, a description of the main activities conducted by the companies within that group, including the location(s) where these activities take place.
3. A description and justification of the economic assumptions and conditions of the proposal, indicating aspects such as estimated sales volumes, market conditions, terms of international exchange, exchange rates, and any other essential circumstances or information for the proposal.
4. A description of the group's transfer pricing policy, including the method or methods for setting prices adopted by the group, justifying their alignment with the arm's length principle.
5. Explanation regarding the selection of the transfer pricing method chosen in the proposal and the profitability indicator, if applicable, including a description of the reasons that supported their selection.
6. Criteria for selecting comparable transactions or enterprises, price, value, or return ranges of comparable transactions or enterprises, and comparability adjustments made.
7. The proposed value, price, or return for the transactions of the request.
8. If the proposal involves a transfer of functions, assets, or risks between related parties, the commercial or economic benefits that the Chilean entity will derive from such transfer must be specified.
9. Any other information that the taxpayer considers relevant for the analysis of the transactions included in the APA request.

Yes, according to Article 42 of Law 19,880 of May 2003, any interested party can withdraw its request when it is not prohibited by the legal system, or renounce its rights, provided that this is done before the signing of the arrangement agreement or it is rejected by the Servicio de Impuestos Internos and the Servicio Nacional de Aduanas, when applicable.

To materialise the withdrawal, the taxpayer must send an email to the address area.apa@sii.cl, including a document signed by those who have express authority to withdraw the request, copies of the powers that state their authority, and the corresponding identification cards.

In these cases, and in accordance with section 3 of Article 14 of Law 19,880, the SII will issue the corresponding resolution, recognising the withdrawal of the submission.

The Service(s) has(have) a period of 6 months to respond regarding the Advance Pricing Arrangement (APA), counted from when the taxpayer has provided or made available to the Service(s) the totality of the information necessary to resolve it.

The period begins counting from the submission or availability of all the information requested by the Service(s). In the case of an Advance Pricing Arrangement unrelated to the import of goods, the period starts from the notification of the certificate issued by the Head of the Departamento de Análisis de Riesgos Internacionales, under the Subdirección de Fiscalización of the Servicio de Impuestos Internos. For an APA concerning the import of goods, where the Servicio Nacional de Aduanas is also involved, both Services must issue a certificate. However, the 6-month period is always counted from the certification issued by the Servicio de Impuestos Internos, as per the fourth resolved of Resolution No. 54 of 2016.

Yes, the SII can propose to the interested party, before the 6-month period it has to respond, an alternative proposal regarding the transactions subject to the request.

If the Service(s) fail to respond within the specified timeframe, the taxpayer's request is deemed rejected, enabling the latter to submit a new Advance Pricing Arrangement (APA) request.

Yes, an APA can be extended or renewed through a prior written agreement signed by the requestor, the Servicio de Impuestos Internos, and the Servicio Nacional de Aduanas, when applicable. For this purpose, the requestor must submit a written extension request to the Oficina de Partes (Records Office) of the Dirección Nacional of the SII, addressed to the Head of the Departamento de Análisis de Riesgos Internacionales, under the Subdirección de Fiscalización, at least 6 months before the expiration of the originally signed agreement.

The validity period of the extended or renewed Advance Pricing Arrangement (APA) begins in the same fiscal year as the extension or renewal request was submitted, as applicable, and lasts for up to the following three fiscal years. Notwithstanding that the SII, in exercising its powers, may authorise a shorter period. In such cases, the validity period of the extension or renewal will be specified in the respective agreement.

Yes, the taxpayer can resign from an Advance Pricing Arrangement (APA) if there have been substantial changes in the essential information or circumstances considered at the time of its entering, extension, or renewal. To do so, the taxpayer must express its intention by submitting a written notice to the Oficina de Partes (Records Office) of the Dirección Nacional of the Servicio de Impuestos Internos, addressed to the Head of the Departamento de Análisis de Riesgos Internacionales, under the Subdirección de Fiscalización.

The taxpayer's notice must include a detailed explanation of the changes in the essential information or circumstances referred to in the preceding paragraph, that justify the nullification of the advance pricing arrangement, its extension, or renewal. The Servicio de Impuestos Internos will communicate this situation, when applicable, to the Servicio Nacional de Aduanas and the other foreign tax administrations involved in the arrangement.

The Advance Pricing Arrangement (APA) becomes ineffective from the date of the taxpayer's notice submission, allowing the Servicio de Impuestos Internos and the Servicio Nacional de Aduanas, when applicable, to exercise all the faculties granted by the law concerning the taxpayer's transactions.

Notwithstanding the aforementioned, the taxpayer retains the right to submit a new APA request, providing the necessary information to justify it.

The Servicio de Impuestos Internos and the Servicio Nacional de Aduanas, when applicable, can revoke the Advance Pricing Arrangement (APA), as well as its extension or renewal, at any time. This is done through the issuance and notification of a resolution when they determine the existence of any of the following circumstances, under which the APA request was accepted:

1. The taxpayer's request was based on erroneous information.
2. The taxpayer's request was based on maliciously false information.
3. The essential information or circumstances considered at the time of its entering, extension, or renewal have substantially changed.

In APAs concerning the import of goods, the revocation resolution must be signed by the Director of the Servicio de Impuestos Internos and the Director of the Servicio Nacional de Aduanas.

As a result of revoking an Advance Pricing Arrangement (APA), the Servicio de Impuestos Internos and the Servicio Nacional de Aduanas, when applicable, may issue the corresponding tax settlement or tax bills, readjustments, interests, and fines, for which a revocation resolution will be issued. This resolution takes effect as follows:

1. When the request was based on erroneous information or a substantial change in the essential information or circumstances considered at the time of its entering, extension, or renewal, the resolution will take effect upon its notification to the taxpayer.
2. When the revocation is based on the maliciously false nature of the information provided in the request, extension, or renewal, the advance pricing arrangement will be ineffective from the date of entering the original agreement or its renewals or extensions, when such information was invoked by the taxpayer.

No, the resolution revoking the Advance Pricing Arrangement (APA) is not claimable and no recourse will apply in its regard.

The submission of maliciously false information in a request for an Advance Pricing Arrangement (APA) that has been totally or partially accepted by the Servicio de Impuestos Internos will be sanctioned with a fine from 50% to 300% of the value of the evaded tax, and ordinary imprisonment in its medium (541 days to 3 years) to maximum term (3 years and one day to 5 years), according to section 1 of No. 4 of Article 97 of the Tax Code.