Tax on Digital Services

  • The tax on digital services (“TDS”) is a specific and indirect tax, substitute of any other tax, which levies digital services provided by individuals or foreign entities to the extent that such services are used in Chile by individuals.
  • The rate proposed for the TDS is 10%.
  • The tax rate is applied to the total amount of the transaction, without any deduction.
  • A withholding mechanism is established, falling upon the entities which issue the means of payment used in the transactions.
  • In the event that the users pay for the digital services with cash, the SII may assess and collect the payment of the TDS directly from the foreign taxpayer that provides the digital services.

Jaime Carey
Managing Partner
+56 2 2928 2224
jacarey@carey.cl
Jessica Power
Partner
+56 2 2928 2214
jpower@carey.cl
Manuel José Garcés
Partner
+56 2 2928 2226
mgarces@carey.cl

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