Chile: Summary report of tax developments

Chile: Summary report of tax developments

The KPMG member firm in Chile has prepared a report that addresses the following topics:

  • Additional tax measures in the COVID-19 emergency plan
  • Special benefit for independent workers
  • The tax authority (SII) instructions on taxation and value added tax (VAT) administration regime for services performed by providers domiciled or residing abroad
  • Instructions regarding the substitute tax under the FUT regime*

*The FUT or “taxable profits fund” mechanism (Fondo de Utilidades Tributables) is used to encourage the reinvestment of profits in Chile, by deferring shareholder-level taxation when the profits are reinvested in Chile—rather than being distributed to shareholders.

  • Instructions on consultations regarding interpretation and application of tax provisions
  • Exchanges of shares between companies that arise from a corporate division
  • Tax treatment of income from a lease with purchase option
  • Tax treatment of products that are exported and sold abroad
  • Tax treatment of the sale of real property
  • VAT return associated with an import in instance of taxpayers under the deferred tax payment plan
  • Tax treatment of commissions charged in operations with virtual prepaid cards
  • Consultations regarding the export of services
  • Billing in temporary supplier unions
  • Tax effects regarding the merger of two private investment funds
  • SII clarification of application criteria for determining the annual average income from the business in order to use the expense for depreciation of fixed assets

Read a July 2020 report (Spanish) prepared by the KPMG member firm in Chile

For more information, contact a tax professional with KPMG’s Americas Center or with the KPMG member firm in Chile:

Alfonso A-Pallete | +1 212 954 3852 |

Rodrigo Stein | +56 2 2997 1412 |

Andres Martinez | +56 2 29971459 |

Alberto Cuevas | +56 2 29971401 |

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