Chile has been declared South America’s most stable and prosperous nation by the World Bank. The Andean nations’ high income per capita and low levels of corruption make it a very attractive place to invest in. Their accounting and tax system have kept up with the steady economic growth and have created an attractive jurisdiction to begin business activities.
Foreigners with residence or domiciled in Chile will only pay taxes on their Chilean source income during the first 3 years from their arrival in Chile. After this period, foreigners will be subject to income tax on their global income. Additionally, Chilean legislation also provides the possibility of an extension of this period in specific cases, nevertheless it is imperative that an extension request is filed with ample time to go through the approval process before the expiration of the time period. In order to obtain an extension, strong supporting documentation must be provided that clearly establishes that the person does not have the intention to permanently remain in Chile.
To help you audit your company properly in Chile and stay out of trouble when filing taxes, our senior accountant has put together a presentation with useful information regarding the country’s tax and accounting system. This Biz Latin Hub resource will be a useful tool for your business aspirations in Chile
For more information about our accounting and taxation services in Chile, please get in contact with our local team.
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