Chile: Government declares a bill to boost productivity
The Ministry of Finance declared on 6th May 2016 that the government had approved a bill to increase productivity. Tax measures contain: Expand the definition of export services to incorporate further services for VAT exemption upon
See MoreChile: IRS specifies how to claim WHT relief on commissions paid on unreported transactions
Law 20,899, which enacted on 8th February 2016, allows Chilean companies to pay a 32% substitute tax on all or part of their accumulated taxable profits balances from 31 December 2015 to 31 December 2016. They may also credit any corporate taxes
See MoreChile: Tax authorities investigate taxpayers with companies in tax havens
On 4th April 2016, the tax authorities have announced that currently they are inspecting Chilean taxpayers owning companies located in tax havens, as a result of the "Panama Papers". This investigation aims to confirm the correct and full compliance
See MoreDTA between Chile and Uruguay signed
An Income and Capital Tax Treaty (DTA) between Chile and Uruguay has been signed on 1st April 2016 in
See MoreChile: IRS established an obligation to submit a new affidavit aligned with BEPS
According to tax audit strategy of Chile, the Internal Revenue Service (IRS) has improved its formal requirements for Chilean taxpayers. On 24th December 2015, the IRS established an obligation to submit an affidavit F.1913 (Annual Return of Global
See MoreChile: Law to simplify structural tax reform of 2014 published
Law No. 20.899 was published in the Official Gazette on 8th February 2016. This Law simplifies the implementation of the tax reform 2014 in matters regarding provisions of the tax code, income tax and VAT, among others. Under the tax reform of 2014
See MoreChile: Details of administrative interpretation on CFC rules disclosed
The Circular 30 of the tax administration has been effected from January 1, 2016. It was published in the official gazette on May 14, 2015. The main features of the CFC rules are as follows: A controlled foreign entity exists where a Chilean
See MoreChile: IMF Working Paper considers impact of structural reforms
On 29 December 2015 the IMF published a Working Paper entitled Long-term Gain, Short-Term Pain: Assessing the Potential Impact of Structural Reforms in Chile. IMF Working Papers are published for the purpose of encouraging comments and do not
See MoreChile: Legislation intended to simplify provisions of tax reform 2014
The Government of Chile has sent to Congress a bill on 15th December 2015 that would make changes to the tax reform legislation enacted in 2014. The current legislative proposal is planned to simplify certain aspects of the tax reform 2014. It is
See MoreDTA between Chile and Italy signed
A Tax Treaty between Chile and Italy has been signed on 23rd October
See MoreAustria-Chile income tax treaty enters into force
The income tax treaty between Austria and Chile entered into force on 9 September 2015. The treaty generally applies from 1 January
See MoreThe Trans-Pacific Partnership negotiation completed
On October 4, 2015, Ministers of the 12 Trans-Pacific Partnership (TPP) countries – Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States, and Vietnam – announced conclusion of their
See MoreDTA between Chile and Japan will be negotiated
The first round of negotiations for a tax treaty between Chile and Japan will take place from 1st October
See MoreChile and Uruguay: TIEAs approved by Uruguay
The Exchange of Information Agreement (TIEA; 2014) between Chile and Uruguay has been approved by the Senate of Uruguay on 1st September 2015 and it still needs to be enacted by the President and then ratified by
See MoreChile and United States: DTA approved by Chilean Senate
The Income and Capital Tax Treaty (2010) between Chile and United States has been approved on 1st September 2015 by the Chilean
See MoreChile and Austria: DTA approved by Chilean Senate
The Income and Capital Tax Treaty (2012) between Chile and Austria has been approved by the Chilean Senate on 1st September
See MoreChile: Reporting process of indirect transfer of shares published
The Resolution No. 65 has been issued on 30th July 2015 and published on the tax administration's website. As described under article 10 and paragraph 3 of the Income Tax Law on about the indirect transfer of shares, this resolution controls
See MoreTreaty between Argentina and Chile – Chilean guidelines issued on treatment of shipping companies following termination of treaty
The tax authority of Chile issued Order No. 1757(the Order) on 6 July 2015 according to which Chilean shipping companies are obliged to pay income tax under the provisions of article 59 of the Income Tax Law whenever operating with Argentina. Also
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