Chilean tax regulations establish that foreigners with residence or tax domicile in Chile are subject to worldwide income taxation, including assets and income generated abroad. This broad tax scope can have significant implications for those maintaining investments or earning income overseas.

Importance of Tax Analysis

To avoid double taxation on the same income, it is crucial to perform a thorough tax analysis considering:

• Double Taxation Avoidance Agreements (DTA): Chile has signed treaties with various countries to provide benefits such as exemptions or reduced tax rates in one of the signatory states.
• Proper Determination of Tax Residence: This is essential to identify applicable tax obligations.
• Identification of Tax Benefits and Foreign Tax Credits: Align with Chilean regulations and international treaties to minimize tax liability.

What Should You Do?

If you are a foreigner residing in Chile with assets or income abroad, it is essential to:

• Evaluate the impact of Chilean and international regulations on your tax liability.
• Apply the benefits established by Chilean tax legislation promptly.
• Optimize the use of existing treaties to avoid penalties or excessive taxation.
• Ensure compliance with tax obligations both in Chile and the countries where you have economic interests.

How Can We Help?

Our team of international tax experts is ready to assist you in applying double taxation treaties and designing the best tax structure tailored to your needs.