chilean tax structure - TTN Transnational Taxation Network

CHILE AS AN INVESTMENT PLATFORM
• UNILATERAL MEASURES: 1993 and 1997, reforms to Income Tax Act creating a
credit for tax paid overseas, thereby reducing double taxation. Reduces tax liabilities
of investors resident in Chile who invest abroad. Arts. 41 A and 41B of Income Tax
Law provides a credit against taxes paid abroad, with a limit of the First Category tax
payable in Chile. Unrelieved tax credits may be used as deductible expense or carried
forward against future tax liabilities.
• 1997: Chile starts negotiation bilateral Double Taxation Agreements, mostly with
countries with FTA´s
• US agreement not moving because of bank secrecy
• Does not consider individuals and only enterprises
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Recent tax developments in Chile
May, 2007