Article 22 of Law 19,506 published in the Official Gazette on July 30, 1997 introduced four paragraphs to article 38 of the Income Tax Law. These new paragraphs contain the basic rules of Transfer Pricing in Chile, which have been effective since 1997. Minor modifications were made by Law 19,840 published in the Official Gazette on November 23, 2002. Additionally, the Chilean tax authority Of Internal Revenue – (SII) issued Circulars No. 3 and 57 both in 1998 containing the guidelines for the application of these rules by the auditors.

Later, Law 20,630 published in the Official Gazette on September 27, 2012, introduces article 41 E of the Income Tax Law, which introduces new provisions relating to the rules between related companies; Methods, studies and adjustments of transfer pricing; Claims, declaration and advance pricing agreements. All this is framed in the fact that transactions with related parties abroad and/or a country or territory of those included in the list referred to in number 2 of article 41 D, comply with having agreed on "normal prices, values or market returns". It should be mentioned that these rules take effect as of the publication of the aforementioned Law in the Official Gazette.

Some of the provisions introduced by Art. 41 E, were the following:

A) The methods applicable to transfer pricing analysis shall be those set out by the OECD.

B) The burden of proof falls upon the taxpayer, who shall be obliged to use the most appropriate method according to the nature of the transaction and shall submit it to the SII.

C) The taxpayer may elaborate a Transfer Pricing Study to determine the price, value or profit of the transactions between related parties.

D) It is mandatory to submit an annually "Affidavit of Transfer Pricing" (F1907) with the information required by the SII.

E) The concept of Advance Pricing Agreements (APA's) is introduced, whereby the taxpayer has the possibility to submit a proposal for APA to the SII together with a Transfer Pricing Study that supports the methods used in the transactions.

F) "Correlative adjustments" are allowed.

On September 29, 2014, Law 20,780 on tax reform was published in the Official Gazette. This Act amends the Income Tax Law, the VAT Law, the Tax Code, and other laws. Law No. 20,780 will enter into full force completely after three years (2014-2017).

On the other hand, continuing with the 2016 Tax Compliance Management Plan and being in line with the Organization for Economic Co-operation and Development (OECD) and the BEPS action plan BEPS (Base Erosion and Profit Shifting), the following is established:

A) On December 31, 2015, the Supplement of the Affidavit for Operation Income 2016 was published, which introduced five new affidavits. Within this, is the Affidavit N° 1913, named Annual Tax Affidavit of Global Tax Characterization, which directly is related to matters of Transfer Pricing. 

B) Circular No. 31 is published on May 12, 2016,  which informs and details the sanctions applicable in the issue of Transfer Pricing in accordance with the provisions of paragraph 6 of article 41 E of the Law of Income tax.

C) On December 27, 2016, the Exempt Resolution No. 126 is published, which includes the provisions of Exempt Resolution No. 14 of 2013, introducing the obligation to submit the Annual Affidavit entitled "Country by Country Report" for taxpayers who have subsidiary companies abroad.