In 2017, the CIT rate changes depending on the elected tax system: if attributed system is elected: 25% onwards; if semi-integrated system is elected 25.5% for commercial year 2017 and 27% for commercial year 2018 and onwards. Beginning 2017, Tax Reform establishes for certain taxpayers an alternative to elect between a system of attributed profits and a partially integrated system, both systems would maintain the integration of taxes, but under partially integrated system, taxpayers must reimburse as a fiscal debit, an amount equal to a 35% of the credit for corporate taxes paid. The credit reimbursement would not be applicable in case of profit distributions to taxpayers domiciled or resident in countries that have a Double Taxation Treaty in force with Chile. Under attributed system, the income subject to final taxes will be attributed to the companies' owners regardless of actual withdrawal or distribution of profits. Under partially integrated system final taxes are generally payable only when profits are actually distributed to owners that are resident individuals or non-residents. Corporations and entities that are not entirely held by Chilean resident individuals and or non-residents cannot elect and are always subject to tax under the partially integrated system.
The guidelines should be treated as relevant when dealing with transfer pricing issues. Article 41 E of the Income Tax Law establishes that any cross-border transaction held with a related party, or with an unrelated entity domiciled in a tax haven, in a back-to-back transaction or any transaction resulting from a restructuring process is subject to transfer pricing regulations. The new regulation is applicable as of 1 January 2013 and applies to 2013 tax obligations and thereafter, thus affecting the intercompany transactions entered into during and after 2012.
For prior years, transfer pricing matters were regulated by Article 38, according to which the burden of proof was on the Internal Revenue Service (IRS), and no obligations relative to statements, studies or methods were set forth therein.