The resolution identifies the territories that may impact the application of transfer pricing regulations, withholding tax rates, and other tax-related aspects.
On March 6, the Chilean Internal Revenue Service (SII) issued Resolution No. 30, which establishes the list of territories or jurisdictions considered to have a preferential tax regime.
It is important to note that this list came into effect on January 1, 2025, in accordance with Article 41 H of the Income Tax Law (LIR).
The Tax Compliance Law introduced new classification criteria, redefining the concept of a preferential tax regime by establishing two joint conditions:
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Lack of an information exchange agreement with Chile: The jurisdiction has not signed an agreement with Chile, or if it has, the agreement is either not in force or presents limitations that prevent effective information exchange.
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Low rating in international transparency standards: Evaluations from the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes will be considered, classifying countries as “compliant,” “largely compliant,” “partially compliant,” or “non-compliant.”
List of Territories with Preferential Tax Regimes
The new list includes 105 territories or jurisdictions, among them: Cuba, Haiti, Honduras, Nicaragua, Venezuela, Trinidad and Tobago, Egypt, Ethiopia, Guinea, Libya, Sudan, Zimbabwe, Afghanistan, Iran, Iraq, North Korea, Syria, Yemen, Sri Lanka, Puerto Rico, French Polynesia, and the Cocos Islands.
Additionally, some newly added countries include Bolivia and Antarctica.
On the other hand, some jurisdictions removed from the list include Cayman Islands, British Virgin Islands, Maldives, Vietnam, Mauritius, Thailand, Malaysia, and the United Arab Emirates, among others.
The complete list is available in the Annex of Resolution No. 30, which you can download [here].
Finally, we recommend keeping in mind that transactions with entities residing in jurisdictions included in this list may impact the application of transfer pricing regulations, withholding tax rates, and other tax-related aspects.
For more information, please contact our Tax Team:
Rodrigo Albagli | Partner | ralbagli@az.cl
Álvaro Rosenblut | Partner | arosenblut@az.cl
Andrea Bobadilla | Director Tax Group | abobadilla@az.cl
Valentina Herrera | Associate | vherrera@az.cl
Javiera Melo | Associate | jmelo@az.cl
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