The domestic law does not provide specific rules for determining the arm’s length price for transactions involving intangible property and relies on the OECD transfer pricing guidelines. Further, although Chile has not yet adopted the hard-to-value intangibles approach as defined in the OECD transfer pricing guidelines, it is considered that domestic legislation does not restrict its application.
The domestic law does not provide specific rules for determining the arm’s length price of intra-group services and relies on the OECD transfer pricing guidelines.
Under the Authorized OECD Approach (AOA), the OECD has published guidelines for the allocation of profits to permanent establishments. However, Chile has reserved its right to continue to use the version of Art. 7 OECD Model Tax Convention as amended before 2010 in its tax treaties. Therefore, in Chile, the AOA is currently only legally relevant to the extent that it does not conflict with the OECD commentary on Article 7 as amended before 2010.