To determine if transactions with related parties that do not have a presence in Chile are carried out at market values ​​(Sworn Statement SII No. 1907)
To validate the market value applicable to transactions between local related parties
For future transactions and contracts to be settled at market values

The transfer price can be defined as the price agreed by two companies to transfer, among them, goods, services or rights. This price is relevant, in the tax field, when the entities that agree on the price have ownership or administration links to each other, (“related parties”), because such circumstance could facilitate that the pricing is not carried out in the same conditions that would have been used by entities that do not maintain these links (“third parties” or “independent”).

Chilean legislation, as of 2012, requires those companies that have had transactions with related parties abroad to complete a series of affidavits (No. 1907, No. 1913, No. 1937), detailing those transactions and justifying the Transfer pricing policies used.


1. Transaction identification and company environment ”Our consultants prepare a detailed report of the company, its business environment, relevant macroeconomic factors, processes, products and competitors. As a result of this process, the relevant inter-company transactions to be incorporated in the study are identified, and in what way.

2. Functional analysis Inter-company transactions are analyzed in detail, identifying the levers of value, risks involved, relevant accounting information, and the economic functions that govern them.

3. Selection of the methodology to be applied Based on the information collected and considering the characteristics and circumstances of the particular case, the most appropriate methodology is selected for the transaction being analyzed.

Chilean tax regulations recognize the transfer pricing methods set forth below: (i) comparable uncontrolled price method; (ii) resale price method; (iii) cost method plus margin; (iv) profit division method; (v) transactional method of net margins; and, (vi) the use of other so-called residual methods, which could be used when it is not possible to apply any of the methods indicated above. In this case, it must be justified that the special characteristics and circumstances of the operations do not allow the application of the preceding methods.

Selection of comparable

Our consultants apply the comparison functions contained in the current standards for transfer pricing, as well as the selection of necessary adjustments to the methods and the comparable ones that are appropriate for the company and transaction.

5. Results and conclusions of the study ”] The information collected and the corresponding analyzes are consolidated in a Transfer Pricing Study. This report describes the results of the application of the chosen method to the transactions subject to analysis and determines its conformity with the principle of full competition or “arm’s length”

6. Recommendations and accompaniment ”The recommendations for improvement in the processes of inter-company transaction management, reporting and accounting are accompanied to the study.