Chile: Government publishes Law regarding new COVID-19 tax incentives package

September 10, 2020

On 2 September 2020, Government Officially published Law 21.256 regarding new COVID-19 tax incentive packages for those who are badly affected by coronavirus pandemic. Previously, on 18 August 2020, the Senate approved this Bill. The measures

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Chile: SII publishes new transfer pricing reporting obligations

September 10, 2020

On 31 August 2020, the Internal Revenue Service (SII) published a Resolution No. 101, which establishes the obligations for companies to submit master file (Form 1950) and local file (Form 1951) respectively. The Resolution includes both Forms. The

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OECD: Global Forum issues peer review reports on transparency and exchange of information

September 02, 2020

On 1 September 2020 the OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes issued nine new second-round peer review reports containing details of their review and assessment of the compliance by nine jurisdictions

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Chile: SII publishes a Letter regarding thin capitalization rules

August 18, 2020

On 31 July 2020, the Chilean tax Authority (SII) published a Letter Ruling No. 1475 of 31 July 2020, which addresses whether interest payments on a loan agreement concluded in 2014 between a Chilean resident company and a non-resident related party

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Chile: Senate approves the ratification of BEPS MLI

July 24, 2020

On 9 July 2020, the Senate approved the ratification of multilateral convention to implement tax treaty related measures to prevent BEPS (MLI). After the ratification process, Chile will need to deposit its ratification instrument to bring the

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Chile: Tax authority suspends advance corporate tax payments and VAT payments

July 13, 2020

On 8 July 2020, the tax authority published a Resolution 76/2020 to suspend the provisional corporate tax payments obligations for the months July, August, and September 2020 respectively. Note that, this  relief applies to micro, small and

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Chile: Government announces speedy VAT credits for small businesses

June 30, 2020

On 30 June 2020, the Government announced that small businesses may receive speedy refunds within 10 days on VAT credits if they can show more than 30% drop in

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Chile: President announces tax measures due to COVID-19

March 24, 2020

On 19 March 2020, the President, Sebastián Piñera, announced tax measures due to the economic impact of the global Covid-19 pandemic. The tax measures include: The monthly provisional payments of corporate income tax is to be suspended for the

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Chile: Senate approves Tax Reform Bill

February 13, 2020

On 29 January 2020, the Senate approved a Tax Reform Bill. Once in force, the proposed measures will generally apply as from 1 January 2020, except the VAT requirements for digital services, which will be implemented three months after the law is

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Chile: Chamber of Deputies approves ratification of BEPS MLI

January 16, 2020

On 9 January 2020, the Chamber of Deputies approved a Bill for the ratification of the multilateral convention to implement tax treaty related measures to prevent BEPS (MLI). The Chile now has to deposit its instrument of ratification in order to

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Chile: Finance Ministry and Finance Committee modifies tax reform packages

November 07, 2019

On 5 November 2019, the Finance Ministry and Senate Finance Committee made an announcement that they have come up with an agreement regarding important changes on tax reform package, which was approved by the Chamber of Deputies on 23 August 2019.

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Chile: Tax authority describes foreign tax credits in case of dividends

October 20, 2019

The tax authority published a Letter No. 2625 of 16 October 2019 regarding credit for taxes paid abroad in case of dividends. It means where payment of dividends through a foreign intermediary, a foreign tax credit on the dividends is available

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Chile: President presents 2020 draft Budget

October 10, 2019

The President, Sebastian Pinera, announced draft budget for the year 2020. He said that they have passed a very crucial economic time due to the low copper prices and the trade war between China and the United States. The draft budget covers

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Chile: Chamber of Deputies approves tax reform bill

August 28, 2019

On 23 August 2019, the tax reform Bill was passed by the Chamber of Deputies. The tax changes in the reform bill include: a new definition of permanent establishmentsa new concept for tax deductible expenses;the introduction of green taxes; anda

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Chile approves protocol to DTA with China

August 22, 2019

The Chamber of Deputies of Chile approved the bill for ratifying the pending protocol of Double Taxation Agreement (DTA) with China for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. It is now

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Chile: IRS amends the annual transfer pricing form

February 24, 2019

The Internal Revenue Service (IRS) has issued a new version of the annual transfer pricing tax return (Form 1907) to be used in 2019, and includes new sections on Country Reporting (CbC). The IRS also added the instructions of the 1907

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Chile: IRS clarifies Taxation of Dividends and Interest

January 30, 2019

Recently, the Internal Revenue Service (IRS) issued two separate Rulings 59 and 2546 to clarify the taxation of dividends and interest by resident and nonresident taxpayer. The two rulings separately discussed in below: Taxation of dividends Ruling

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IMF report looks at Chile’s economy and tax reforms

September 22, 2018

On 20 September 2018 the IMF issued a report on the economic position of Chile following consultations under Article IV of the IMF’s articles of agreement. Chile has experienced strong economic growth in 2018 and is expected to reach around 4%

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