Taxation of international executives
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/territories.
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.
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).
Are there any additional considerations that should be considered before initiating a short-term assignment in your country/territory?
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.