Chile – Simplified Regime for Non-Residents and Non-Domiciled Taxpayers

On December 11^th, 2020, the Chilean Tax Authorities published Exempt Resolution No. 150, effective as from January 1^st, 2021, setting forth a simplified regime related to non-resident and non-domiciled taxpayers – RUT Simplificado – for purposes of: (i) obtaining a Chilean Tax Id; (ii) complying with the obligation to notify commencement of activity; (iii) keeping accounting; and (iv) filing annual income taxes.

This regime shall apply to non-resident and non-domiciled taxpayers – individuals and entities -who earn Chilean-source income arising only from investments or transactions with capital assets and that obtain their Tax ID through the simplified regime provided by this Exempt Resolution and through the Tax Responsible Agents (Agentes Responsables para Fines Tributarios). Upon compliance with said requirements, such taxpayers are released from the obligation of communicating the commencement of their activities, keep accounting and file annual tax report related to said income.

This Exempt Resolution specifies that it is not necessary that the relevant transactions be carried out in Chile, it is only required the assets to be located in Chile or that the transactions are allowed to generate Chilean source income.

This act also describes thoroughly the requirements and conditions that the abovementioned taxpayers must meet, including:

a. Enter into an agreement with a Responsible Agent.

b. The agreement must be entered into between a Responsible Agent and more than one investor.

c. Non-resident or non-domiciled persons that act in Chile on their own name but on account of third parties.

d. If the agreement is not in Spanish, translation is not required.

f. Sworn statement of not having a prior Chilean Tax Id.

g. Special limitations for Preferential Tax Regimes.

This Exempt Resolution further describes the modality that the relevant transactions and investments must follow, as well as the obligation of the Responsible Agent of individualizing the investor(s).

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