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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OTHER TAX AVOIDANCE VEHICLES<br />
• Art. 38 BIS, allows for no capital gains on the sale of shares of certain companies with<br />
importance presence in the local stock market<br />
• DFL 2 of 1959, allows for certain <strong>tax</strong> benefits related with income generated with<br />
certain type of property (residential less 140 mts2). No inheritance or donations <strong>tax</strong><br />
(first transfer only) no income <strong>tax</strong> from rental.<br />
• Personal Real Estate: No capital gains <strong>tax</strong> on personal real estate<br />
• Usufruct. Income Tax Law provides that the increase in price of the nude property,<br />
does not affect the holder of the usufruct on consolidation<br />
• Agricultural Activity: allows for a system of, “presumed income” in relation to<br />
appraisal of farm property<br />
• Forests: native or planted forests under DL 701 are not subject to donation <strong>tax</strong>.<br />
• Freedom to agree on distribution of profits allows to transfer patrimony from the rich<br />
partner to the heirs.<br />
• Non payment of personal income <strong>tax</strong> until distribution.<br />
• Easter Island: No income <strong>tax</strong> paid as long as profits not distributed – allows to sell<br />
Easter Island company with no <strong>tax</strong>es<br />
36<br />
Recent <strong>tax</strong> developments in Chile<br />
May, 2007
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