Chile

238. Chile can legally issue the following two types of rulings within the scope of the transparency framework: (i) cross-border unilateral APAs and any other cross-border unilateral tax rulings (such as an advance tax ruling) covering transfer pricing or the application of transfer pricing principles; and (ii) related party conduit rulings.

239. For Chile, past rulings are any tax rulings within scope that are issued either: (i) on or after 1 January 2014 but before 1 April 2016; or (ii) on or after 1 January 2010 but before 1 January 2014, provided they were still in effect as at 1 January 2014. Future rulings are any tax rulings within scope that are issued on or after 1 April 2016.

240. In the prior years’ peer review reports, it was determined that Chile’s undertakings to identify past and future rulings and all potential exchange jurisdictions were sufficient to meet the minimum standard, noting however that they had not yet exchanged information on rulings within the scope of the standard. In addition, it was determined that Chile’s review and supervision mechanism was sufficient to meet the minimum standard. Chile’s implementation remains unchanged, and therefore continues to meet the minimum standard.

241. Chile has met all of the ToR for the information gathering process and no recommendations are made.

242. Chile has international agreements permitting spontaneous exchange of information, including being a party to (i) the Multilateral Convention on Mutual Administrative Assistance in Tax Matters: Amended by the 2010 Protocol (OECD/Council of Europe, 2011[4]) (“the Convention”) and (ii) bilateral agreements in force with 33 jurisdictions.1

243. During the year in review, Chile exchanged information for the first time. Chile reported seven exchanges during the year in review for two future rulings issued in December 2019.

244. For the year in review, the timeliness of exchanges is as follows:

245. Chile notes that it did not respond to the follow-up request because the request related to underlying information regarding the taxpayer’s accounts rather than to the specific content of the ruling. Subsequently, the request was closed as the country confirmed that they had obtained the information directly from the taxpayer.

246. In the prior years’ peer review reports, it was determined that Chile’s process for the completion and exchange of templates were sufficient to meet the minimum standard. With respect to past rulings, no further action was required. Chile’s implementation in this regard remains unchanged and therefore continues to meet the minimum standard. It should be noted that for the peer input, one peer indicated that the information in the summary box of the template could be more detailed.

247. Chile has the necessary legal basis for spontaneous exchange of information, a process for completing the templates in a timely way and has completed all exchanges. Chile has met all of the ToR for the exchange of information process and no recommendations are made.

248. The statistics for the year in review are as follows:

249. Chile does not offer an intellectual property regime for which transparency requirements under the Action 5 Report (OECD, 2015[1]) were imposed.

References

[3] OECD (2021), BEPS Action 5 on Harmful Tax Practices - Terms of Reference and Methodology for the Conduct of the Peer Reviews of the Action 5 Transparency Framework, OECD Publishing, Paris, http://www.oecd.org/tax/beps/beps-action-5-harmful-tax-practices-peer-review-transparency-framework.pdf.

[1] OECD (2015), Countering Harmful Tax Practices More Effectively, Taking into Account Transparency and Substance, Action 5 - 2015 Final Report, OECD/G20 Base Erosion and Profit Shifting Project, OECD Publishing, Paris, https://dx.doi.org/10.1787/9789264241190-en.

[2] OECD (ed.) (2017b), Harmful Tax Practices - 2017 Progress Report on Preferential Regimes, OECD Publishing, Paris, http://dx.doi.org/10.1787/9789264283954-en.

[4] OECD/Council of Europe (2011), The Multilateral Convention on Mutual Administrative Assistance in Tax Matters: Amended by the 2010 Protocol, OECD Publishing, Paris, https://dx.doi.org/10.1787/9789264115606-en.

Note

← 1. Participating jurisdictions to the Convention are available here: www.oecd.org/tax/exchange-of-tax-information/convention-on-mutual-administrative-assistance-in-tax-matters.htm. Chile also has bilateral agreements with Argentina, Australia, Austria, Belgium, Brazil, Canada, China (People’s Republic of), Colombia, Croatia, Czech Republic, Denmark, Ecuador, France, Ireland, Italy, Japan, Korea, Malaysia, Mexico, Norway, New Zealand, Paraguay, Peru, Poland, Portugal, Russia, Spain, South Africa, Sweden, Switzerland, Thailand, United Kingdom and Uruguay.

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