chilean tax structure - TTN Transnational Taxation Network
chilean tax structure - TTN Transnational Taxation Network
chilean tax structure - TTN Transnational Taxation Network
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CHILEAN TAX TAX<br />
STRUCTURE<br />
STRUCTURE<br />
CHILEAN TAX STRUCTURE<br />
• Chilean income <strong>tax</strong> is built around three basic principles: a) it is individuals that are <strong>tax</strong>ed<br />
and <strong>tax</strong>es paid by an enterprise are only paid on account of the <strong>tax</strong>es that the owners will<br />
finally pay, b) the <strong>tax</strong> base includes incomes received or accrued during a given <strong>tax</strong> period,<br />
and c) Resident and non resident business owners only pay personal <strong>tax</strong>es for the<br />
withdrawn profits.<br />
• Taxes and rates:<br />
– First Category Tax (company) : 17%<br />
– Personal <strong>tax</strong> (global com. Tax) : gradual, up to 40% (most individuals use companies<br />
only 10.000 individuals pay highest rate)<br />
– Dividends : 35% less FCT 17%<br />
– Interest : 4% (when from Fin. Institution)<br />
– Royalties : 30%<br />
– Engineering and Technical Ass. : 20%<br />
– VAT : 19% (up from 18% in 2003 to compensate for FTA´s)<br />
– STAMP TAX : 0.134 of face value of document w/ max 1.608<br />
– Real estate <strong>tax</strong> : 2% of fiscal valuation of property<br />
– Municipal license : min 0.25% – max. 0.5% of <strong>tax</strong>payers equity; US$<br />
380,000 maximum; charged by Municipality where<br />
office is established<br />
2<br />
5<br />
Recent <strong>tax</strong> developments in Chile May, 2007
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