The new statement of transfer pricing aims to deliver qualitative information to characterize large taxpayers of our country, under the management of tax compliance. Affidavit 1913, entitled “Annual Tax Declaration of Global Tax Characterization”, must be submitted separately and additionally to the annual statement of Transfer Pricing No. 1907.
Who should submit the Affidavit and when?
This declaration is mandatory for taxpayers classified in the segment of “Big Companies” and for those taxpayers who are on the List of Large Taxpayers, in accordance with the decision of the SII provided in the Article 3 of the Organic Law of the SII, of December 31st 2015. Taxpayers may check the segment to which it belongs on the website of SII in the menu “My Tax Information / My Data”.
Before filing Form No. 22 of the tax year 2016.
Sections of the Declaration No. 1913
►► Taxpayer Identification
►► Data relating to the Group or Holding Company
►► Data relating to Corporate Reorganization
►► Data relating to Financial Instruments and / or Derivative Contracts
►► Data refers to profit before tax
►► Data relating to Capital Goods
►► Data realating to International Operations
Questions to answer by the taxpayer
In each section, the taxpayer must answer a series of questions of a qualitative nature, which relate to business decisions of the company in Chile, to define whether they correspond to autonomous corporate actions, or whether on the contrary are efforts conducted by related entities abroad and identify cases in which external assistance was received.
Below we highlight some of these questions:
What percentage of total revenues represents transactions with related companies during the preceding business year?
In the above case, operations with Group companies or Holding.
Does any of the partner companies of these operations not have its own staff or significant assets?
Taking the accounting EBITDA of the company. Do spends more than 30% of it to solve royalties, interest and financial expenses, derivatives, management fees or other charges for the benefit of related companies?
Has carried out during the previous marketingyear a scheme involving entities incorporated abroad to generate economic or tax benefit?
During the previous business year is in the process of implementing a scheme involving the transfer of functions or an interest in entities incorporated abroad that generate economic or tax benefit?