- New regulation standardizes the treatment of foreign tax credits.
- Extends the types of income which grant credit:
- Dividend and profit distributions;
- Income for the use of intangibles;
- Professional or technical services and export services;
- Income derived from dependent or independent labor;
- Income attributed to PE located abroad;
- Passive income obtained by controlled foreign companies, and
- Income derived from tax treaty jurisdictions with which Chile undertook to grant a foreign tax credit.
- The possibility of using the WHT paid in Chile by a foreign subsidiary of a Chilean company is established.
Certain income derived from research and development projects are excluded from the passive income definition, subject to approval by the Production Development Corporation (CORFO).
