The Chilean Internal Revenue Service (Chilen IRS) issued, on 09 January 2025, Resolution Number 06 establishing the procedure for processing requests for correlative adjustments in accordance with Article 41 E of the Income Tax Law (ITL).
The Resolution aims to update and establish new instructions regarding the local adjustments resulting from transfer pricing adjustments made by other tax administrations, as set forth in No. 8 of Article 41 E of the ITL.
The Chilean IRS defines the procedure and information necessary to request the adjustment. Once the request is made, the Chilean IRS will review the case and issue a resolution approving or rejecting the adjustment. If approved, the resolution will specify the amount of the adjustment and any necessary modification in prices, values or profitability. If the adjustment results in a lower tax burden on the taxpayer, a tax refund request may be filed in accordance with Section 126 of the Tax Code.
The resolution also clarifies that taxpayers can use the Mutual Agreement Procedure (MAP) established in tax treaties to address transfer pricing adjustments. This resolution replaces the Chilean IRS Resolution No. 67 of 2013.
It is essential to note that the application must be submitted within a period of one year from the time the transfer pricing adjustment is considered final in the other jurisdiction. In the event that it is submitted out of time, the Chilean IRS will deny said request.
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