Chile Returns Taxes Paid to Freelancers During Virus Downturn

Freelancers in Chile will be refunded taxes paid so far this year as part of measures to help businesses and households shoulder the ongoing health emergency from the new coronavirus.

The Finance Ministry ordered Chile’s tax authority, Servicio de Impuestos Internos, to return taxes paid on invoices for services during January and February, under a decree published in the official gazette Wednesday. The refunds will be handed out to independent workers in April.

• Chilean tax law requires independent workers to pay a 10.75% gross sales tax each month, which is then discounted from their annual tax bill.
• The tax authority announced this week that it will begin paying refunds from independent workers’ annual declaration on April 21, three weeks earlier than normal.
• The decree also includes a three-month suspension of monthly payments for corporate taxes and a three-month delay of value-added tax payments for businesses with annual sales of less than 10 billion Chilean pesos ($11.5 million).