Ruling No. 1617-2025 permits digital content creators in Chile to claim a tax credit for US taxes paid, provided the US holds taxing rights over the income.
Chile’s Tax Administration (SII) has published Ruling No. 1617-2025 of 14 August 2025 on the SII’s website on 19 August 2025, clarifying that digital content creators residing in Chile can claim a tax credit for taxes paid in the US, provided the US has the taxing right over the income.
This is based on Article 23 of the Chile-US Income and Capital Tax Treaty (2010) and Article 41A of Chile’s Income Tax Law, which govern foreign tax credits.
The SII explained that it requires taxpayers to report foreign taxes in their annual income tax return (Form 22) and provide proof of their income. Taxpayers must provide a payment receipt, tax return, or official certificate from the US tax authority. If unavailable, they can use other legal evidence to prove compliance.
Earlier, SII published Letter Ruling No. 369 on 14 February 2025 regarding foreign tax credits for taxes not covered by a treaty. The letter clarified that US state taxes on income from technical assistance services are not covered by the Chile-US tax treaty, which applies only to federal taxes.
However, under Article 41A of Chile’s Income Tax Law, a foreign tax credit may still be available for qualifying foreign income, regardless of the presence of a double taxation agreement.
