The tax authority clarified in Ruling No. 386/2024 that the responsibility for the payment of withheld taxes falls solely on the persons obligated to perform the withholding. Thus, if a dividend is paid to a nonresident shareholder in Chile to whom a provisional credit was improperly or excessively granted, the company withholding the tax is responsible for paying the tax due as a result of the improper credit, and not the taxpayer subject to withholding. However, the Chilean company will have a claim against the foreign entity for the additional tax.
Read a March 2025 report (Spanish and English) prepared by the KPMG member firm in Chile
Other direct and indirect tax-related topics discussed in this report include:
- Taxation of financial advisory services provided from abroad
- Right to credit for incomes not included in an income tax treaty
- Adjustability of tax credits in accounting in foreign currency
- Power of the tax authority to assess a restructuring of foreign entities prior to the amendments of Law No. 21.713
- Application of anti-avoidance rules in business reorganization
- Instructions on the procedure for designating a representative for business groups
- Reporting obligations on variations in financial instruments
- Taxable base for value added tax (VAT) on the sale of real estate on the acquisition of which no VAT has been paid
- Tax credit in the importation of goods
- Instructions on self-reporting for tax offenses under Law No. 21,713
- Assignment of contract for purposes of the special credit for construction companies
- Timing for the generation of VAT credit in real estate