DOING BUSINESS IN CHILE

Posted By Romain Ponsot on Oct 6, 1907 in Doing Business


Date de publication : 06-10-1907

modèle générique Placeholder
modèle générique

Complete list of the other countries…

 

The following information are for the sole purpose  of providing a general overview of  the local taxation of the Corporate tax aspects of the country. In any case, it can not replace a tax advice, or be considered as an official information.

 

Yes we tax in Chile

 

Flash News

Tax administration presented a proposal for new monthly VAT returns.

Tax agreements in negotiation with Argentina and with Indonesia.

Local tax advisors

No specific information on Local tax advisors

Local tax administration

Tax administration website: Click here

Ministry of Finance website: Click here

Permanent Establishment

No specific information of the Permanent Establishment

Taxable income in Chile is Worldwide.

Corporate Income Tax

CIT tax rate is a progressive rate up to 35%.

There is no minimum tax.

Non deductible expenses

  • Payment of dividends is not deductible

Non taxable income

  • Repatriation of capital
  • Certain capital gains
  • Dividends distributed to local companies (participation exemption)

Carry Forward : Yes

Self-assessment system based on the annual tax return.

Corporate companies are paying monthly instalments of the CIT

Whithholding Taxes (payment to foreign companies)

The local tax rates in Chile are the following, subject to the provisions of an applicable double tax treaty, if any.

There is a 35% branch tax

There is a 35% WHT on dividends

There is a 35% WHT on interests. Such rate could be reduced for certain foreign recipients.

No specific information on the WHT on royalties.

There is a 15% WHT on management fees

There is a 15% WHT on technical fees

Capital gains

Capital gains are taxed under the CIT.

VAT

Standard rate : 19%

Zero rated : most of exports of goods and services

Exemptions:

  • premiums insurance paid by commercial airlines
  • transport of passengers by transport companies

No specific information on the possibility to obtain a refund in case of excess of Input VAT.

No other specific information on VAT

Miscellaneous

Prescription = 3 years

No specific information on the foreign exchange control in Chile.

Yes, there are thin  capitalization rules in Chile

 

 

 

Do not hesitate to share your experience in Chile with us in the comments below. Any comments are welcome !

 

Romain Ponsot

Romain est conseiller en fiscalité au sein d’un leader mondial du shipping. Grâce à son expertise tant en matière de TVA, fiscalité internationale, problématiques intragroupe qu’en matière de fiscalité des particuliers, Romain vous guidera au travers d’articles professionnels et humoristiques. 

Romain, poète dans l’âme, aime particulièrement le couscous et passe beaucoup de temps à glacer ses souliers. Profil LinkedIn
Romain Ponsot

Les derniers articles par Romain Ponsot (tout voir)

Submit a Comment

Votre adresse de messagerie ne sera pas publiée. Les champs obligatoires sont indiqués avec *

Ce site utilise Akismet pour réduire les indésirables. En savoir plus sur comment les données de vos commentaires sont utilisées.