Foreign investments made by Chilean-residents

[et_pb_section bb_built=”1″ inner_width=”auto” inner_max_width=”1080px”][et_pb_row][et_pb_column type=”3_4″ custom_padding__hover=”|||” custom_padding=”|||”][et_pb_text _builder_version=”3.12.2″ text_orientation=”left”]

Foreign investments made by Chilean-residents

[/et_pb_text][et_pb_accordion _builder_version=”3.12.2″ text_orientation=”left”][et_pb_accordion_item _builder_version=”3.12.2″ title=”Foreign tax credits system” use_background_color_gradient=”off” background_color_gradient_start=”#2b87da” background_color_gradient_end=”#29c4a9″ background_color_gradient_type=”linear” background_color_gradient_direction=”180deg” background_color_gradient_direction_radial=”center” background_color_gradient_start_position=”0%” background_color_gradient_end_position=”100%” background_color_gradient_overlays_image=”off” parallax=”off” parallax_method=”on” background_size=”cover” background_position=”center” background_repeat=”no-repeat” background_blend=”normal” allow_player_pause=”off” background_video_pause_outside_viewport=”on” text_shadow_style=”none” box_shadow_style=”none”]

  • New regulation standardizes the treatment of foreign tax credits. The same system applies whether the foreign jurisdiction has a valid tax convention for the avoidance of double taxation with Chile or not.
  • Redefinition of the applicable credit limits.
  • Extends the availability of credits to be used:
    1. Dividend and profit distributions;
    2. Income for the use of intangibles;
    3. Professional or technical services and export services;
    4. Income derived from dependent or independent labor;
    5. Income attributed to PE located abroad;
    6. Passive income obtained by controlled foreign companies; and,
    7. Income derived from tax treaty jurisdictions with which Chile undertook to grant a foreign tax credit.

[/et_pb_accordion_item][et_pb_accordion_item _builder_version=”3.12.2″ title=”Passive income obtained by controlled foreign companies” use_background_color_gradient=”off” background_color_gradient_start=”#2b87da” background_color_gradient_end=”#29c4a9″ background_color_gradient_type=”linear” background_color_gradient_direction=”180deg” background_color_gradient_direction_radial=”center” background_color_gradient_start_position=”0%” background_color_gradient_end_position=”100%” background_color_gradient_overlays_image=”off” parallax=”off” parallax_method=”on” background_size=”cover” background_position=”center” background_repeat=”no-repeat” background_blend=”normal” allow_player_pause=”off” background_video_pause_outside_viewport=”on” text_shadow_style=”none” box_shadow_style=”none”]

Certain income derived from research and development projects are excluded from the passive income definition.

[/et_pb_accordion_item][et_pb_accordion_item _builder_version=”3.12.2″ title=”Tax haven regulations” use_background_color_gradient=”off” background_color_gradient_start=”#2b87da” background_color_gradient_end=”#29c4a9″ background_color_gradient_type=”linear” background_color_gradient_direction=”180deg” background_color_gradient_direction_radial=”center” background_color_gradient_start_position=”0%” background_color_gradient_end_position=”100%” background_color_gradient_overlays_image=”off” parallax=”off” parallax_method=”on” background_size=”cover” background_position=”center” background_repeat=”no-repeat” background_blend=”normal” allow_player_pause=”off” background_video_pause_outside_viewport=”on” text_shadow_style=”none” box_shadow_style=”none”]

  • For a territory or jurisdiction to qualify as a harmful preferential tax regime, one of the following conditions must be satisfied: (a) the effective income tax burden must be lower than 30%, or (b) foreign-sourced income must not be levied.
  • Nevertheless, territories or jurisdictions that have a valid convention that allows the exchange of tax information with Chile, whether bilateral or multilateral, are not considered as harmful preferential tax regimes.

[/et_pb_accordion_item][/et_pb_accordion][et_pb_text _builder_version=”3.12.2″ global_module=”1947″ text_orientation=”left”]

BACK

[/et_pb_text][/et_pb_column][et_pb_column type=”1_4″ custom_padding__hover=”|||” custom_padding=”|||”][et_pb_sidebar _builder_version=”3.12.2″ area=”sidebar-1″ orientation=”right” /][/et_pb_column][/et_pb_row][/et_pb_section]