The 2022 tax reform project in Chile includes several provisions that affect how international investors and multinational companies are taxed. Key changes focus on enhancing fairness and compliance in cross-border taxation.
One of the central elements is the expansion and clarification of transfer pricing standards, including the use of the interquartile range as a metric for arm’s length pricing and modifications to advance pricing agreements (APAs). This strengthens the ability of Chilean tax authorities to ensure transactions between related parties comply with OECD-aligned principles.
The reform also proposes adjustments to how dividends and capital income paid to foreign residents are taxed — with specific withholding tax structures and credits designed to respect international tax treaty frameworks.
By refining these international tax rules, Chile seeks to reduce base erosion and profit shifting while encouraging transparency for global investors with operations or holdings in the country.
Contact us to know more: Claudia Marcela Valdés Muñoz cvaldes@bbsc.cl +56 9 8139 3599
