WTS in Chile

In the last five years, we have witnessed Latin American and Caribbean countries undergoing extensive reforms to their Transfer Pricing regulations to achieve standardization for the internationally proposed BEPS measures. In addition to this scenario, Chile is also one of the 130 countries and jurisdictions that have subscribed to the OECD’s Inclusive Framework.

Chile’s tax court has ruled against the Chilean Tax Administration in a decisive case that could bring profound changes to the local transfer pricing regulatory framework. This case and its impact on taxpayers is outlined by our Chilean colleagues.

Law N° 21.210 makes foreign companies providing digital services subject to 19% VAT in Chile.

Chile is extending the scope for electronic invoicing.

Chile’s Internal Revenue Service published Resolution 101, which incorporates two new affidavits regarding transfer pricing compliance, which must be submitted by the taxpayer in certain cases.

 VAT exemption for the importation of capital goods in Chile

An analysis of double taxation due to COVID-19 for individuals working abroad

Despite the modernised Income Tax Law and Tax Code, which has been published at the beginning of this year, Chile expects further practical and regulatory modifications due to the ongoing COVID-19 pandemic.

As of 1 June 2020, foreign companies providing digital services have to apply 19% VAT in Chile.

An overview on relevant changes made to the VAT law.

Taxation of Digital Economies - Update

The Chilean Government announced a tax modernisation project that includes a legal definition of PE