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Chile - Special considerations for short-term assignments

Chile - Special considerations

Taxation of international executives

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Residency rules

Payroll considerations

Taxable income

Additional considerations

For the purposes of this publication, a short-term assignment is defined as an assignment that lasts for less than 1 year.

Residency rules

Are there special residency considerations for short-term assignments?

As a general rule, if as a consequence of the short-term assignment the individual remains in Chile for less than 183 days during the calendar year, they will be regarded as a non-resident in Chile. If they remain more than 183 days in Chile during the calendar year, they will be regarded as a tax resident. Also, Chile currently has Agreements in force for the Avoidance of Double Taxation with a number of different countries/jurisdictions.

Payroll considerations

Are there special payroll considerations for short-term assignments?

In case there was a tax liability resulting for the short-term assignee, potential withholding tax obligations might apply.

Taxable income

What income will be taxed during short-term assignments?

Taxation of income received during a short term assignment by a taxpayer with non-resident status will be limited to Chilean source income obtained during the assignment (the eventual applicability of Tax Treaty provisions will have to be taken into consideration).

Additional considerations

Are there any additional considerations that should be considered before initiating a short-term assignment in your country/jurisdiction?

The charge of the cost of the assignee to the local company needs to be considered and also the eventual applicability of Tax Treaty provisions. The taxability of an assignee in Chile is independent from their immigration status. That is, taxpayers are assessable on their income regardless of their migratory status.

Disclaimer

All information contained in this publication is summarized by KPMG Chile, the Chilean member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on Chilean income tax law Decree law n° 824..

Copyright

© 2019 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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