Chile: Clarification on VAT exemption for professional partnerships; other direct and indirect tax developments
VAT exemption for professional partnerships
January 22, 2024
The Chilean tax authority (SII) clarified that the value added tax (VAT) exemption for professional partnerships does not apply to a professional partnership constituted of one or more natural persons who assign their social rights as an asset in the accounting of their individual enterprise and do not perform any personal or professional management for the benefit of the partnership.
Read a January 2024 report (Spanish and English) [PDF 1.6 MB] prepared by the KPMG member firm in Chile
Other direct and indirect tax-related topics discussed in this report include:
- Calculation of variable monthly provisional payment rate
- Rectification of substitute tax declaration of final taxes
- Modification of exempt resolution No. 103/2021 on annual registration of withholdings (salaries and other remunerations)
- Cryptocurrency taxation
- Imputation of passive income
- Application of the general anti-avoidance standard to mergers
- Exporter VAT refund for international cargo transportation services
- Taxation of the acquisition of a software license for marketing from a supplier located in Spain
- Taxation of indirect sales of Chilean assets
- Special procedure to request a reduction in contributions for occupied properties
- New temporary and extraordinary credit for the purchase of new homes acquired with mortgage-backed loans
- Form and period in which creditor entities must comply with the obligation to inform the SII of loans with mortgage guarantees contracted for the acquisition of new homes
- Removal of the classification of land as preferably suitable for forestry
- Limit of 35% of passive income to benefit from the small and medium sized enterprises (SME) regime
- Taxation of services provided by a foreign company
- Effects of legal readjustments to the minimum monthly income of workers in service provision contracts
- Application of transfer pricing rules to investment funds not treated as taxpayers
- Validity of mandates signed with electronic signature in procedures executed before the SII
- VAT on benefits of the free choice modality of the Ministry of Health’s funding branch (FONASA)
- VAT in polysomnography examination
- Issuance of invoice for the sale of tickets to public shows or paid meetings
- Exemption from stamp tax on documents necessary to carry out money credit operations for the financing of exports
- Various SII VAT guidance
- Values of land and buildings of certain non-agricultural real estate and the technical definitions and tables of values of land and buildings of real estate of the first agricultural series for the reevaluation process
- New schemes for 2023 for catalog of tax schemes
- Law No. 21,641 strengthening the resilience of the financial system and its infrastructure