Chile: Withholding on payments to U.S. residents; reporting by digital platforms; other direct and indirect tax developments
Oficio No. 1763/2024 provides guidance on withholding under Chile-U.S. income tax treaty
Oficio No. 1763/2024 provides that a payer of income to a U.S. resident entity may not withhold any tax (or withhold tax at a reduced rate) under the provisions of the Chile-U.S. income tax treaty only from the date on which the U.S. payee files the certificate of tax residency for purposes of the treaty and the sworn statement under Resolution Ex. No. 58 of 2021 on the non-configuration of a permanent establishment (PE) in Chile and that the provisions to be beneficiary of the treaty are met.
Read an October 2024 report (Spanish and English) prepared by the KPMG member firm in Chile
Other direct and indirect tax-related topics discussed in this report include:
- Obligation of digital platforms to report income of lessors of furnished real estate (Oficio No. 1768/2024)
- Taxation of contribution of shares acquired through reinvestment of profits
- Profits eligible optional regime of substitute tax on final taxes (ISIF) (Oficio No. 1769/2024)
- Calculation of the 2,000 UF limit to access the special credit for construction companies (Oficio No. 1764/2024)