Chilean Accounting and Tax Compliance Requirements
The legalities for running a business in Chile are similar to those of other Latin American countries. However, there are a few differences concerning taxes, documentation, and licensing that are important to note in your research of Chilean business practices. Tax Rates Chile has four main taxes: Value Added Tax (VAT), Stamp tax, Customs duties, and corporate and personal income taxes. Other tax rates and rules are listed below: The Corporate income tax rate is 20% on worldwide income and capital gains There…
Tax Filing in Chile: What You Need to Know
If you are looking to enter the Chilean market, or already do business there, it is worth having an understanding of tax filing in Chile. Because while it is highly likely your tax affairs will be handled by corporate accountants in Chile, having a grasp of the requirements needed to remain in good standing with local authorities will be beneficial to your business. Chile is a prosperous high-income country, as highlighted by its gross national income, which reached $24,140 (all figures in USD) in 2019, after three…
5 Tips for business success for US companies in Chile
As one of the world’s most entrepreneurial nations, there are ample business opportunities for US companies in Chile. Chile and the US have maintained a strong commercial relationship dating back to 1918. In 2019, both countries celebrated their 100th anniversary of the Chilean-American Chamber of Commerce. This longstanding and mutually beneficial commercial relationship has fostered strong connections between the 2 countries. For decades, Chile has modelled its economy and institutional foundations on…
EXPENSES AND THE CHILEAN TAXATION SYSTEM
Tax Expenses: What types of expenses does Chile’s IRS allow a company to deduct from its financial profit (gross income)? It is common knowledge that companies must only pay taxes from the profit forming part of its taxable base and that which they have made during a certain tax period. The taxable base corresponds to the financial profit of a tax period, inclusive of adjustments. In Chile, the corporate tax rate applied to gross income currently stands at 20%. However, Chile’s recent tax reform is set…
How many hours do South American workers need to work to pay their taxes
According to the World Bank workers in Uruguay spend half their working day to support the government. However on the other side they only spend 113 working days per year making them some of the least productive in the region. This compares poorly with Chile at 146 working days and Argentina 203 days. Source Banco Mundial, El Pais, Infonegocia, La Nacion About Gateway to South AmericaGateway to South America is an independent Brokerage and Advisory company committed to helping foreign investors to invest in…
