Chile: Changes to income tax law concerning permanent establishment, other rules
Changes to income tax law enacted as part of tax modernization legislation
Changes to income tax law enacted as part of tax modernization legislation
Changes to the income tax law, enacted as part of the “tax modernization” (modernización tributaria) legislation, include:
- Updated taxpayer-relationship rules (that is, defining which parties are in a position of control or are subject to control of a common company)
- Rules for allocating how participants must recognize income obtained through a joint venture or other fiduciary relationship
- Rules relating to what constitutes a permanent establishment
- Rules relating to the tax treatment of investment funds and mutual funds
- Rules for applying value added tax (VAT) to the provision of services with regard to an infrastructure project
- Rules for the treatment of a return of capital when a partner withdraws from a partnership
- Provisions for the issuance of sales invoices of software from abroad
Read a July 2021 report (Spanish and English) [PDF 860 KB] prepared by the KPMG member firm in Chile
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