Chile’s Law No. 21,713, published on October 24, 2024, amends tax assessment regulations, revising the powers of the IRS concerning transfers and reorganizations. Key changes include a broadened definition of transfer prices, a new assessment of market values, and updated requirements for tax-free reorganizations. Despite these changes, uncertainties persist, pending the IRS’s final guidance.
On October 24, 2024, Chile enacted Law No. 21,713, which introduces vital tax compliance regulations. This law revised Article 64 of the Chilean Tax Code, which pertains to the Internal Revenue Service’s (IRS) tax assessment authority and tax-free reorganizations. A draft circular letter from the IRS interpreting these changes has been released; however, it has not been finalized, leading to residual uncertainties regarding its practical implications.
In conclusion, Law No. 21,713 brings significant changes to Chile’s tax assessment provisions, particularly regarding transfer assessments, market value definitions, and tax-free reorganizations. While these updates may streamline processes and reduce requirements, outstanding questions remain regarding their implementation, which the IRS is expected to clarify in an upcoming circular. Stakeholders should remain vigilant as more information becomes available.
Original Source: www.internationaltaxreview.com
