Chile Tax Agency Clarifies Corporate Income Tax Treatment of Investment Fund Dividends Under Pro-SME Regime

The Chilean Internal Revenue Service May 29 issued Letter No. 1041, clarifying the corporate income taxation of dividends from mutual and investment funds under the pro-small and medium-sized enterprise (SME) regime. The taxpayer sought clarification regarding whether a taxpayer under the pro-SME regime must include dividends received from domestic mutual and investment funds in the taxable base for first-category tax. The Tax Agency clarified that: 1) the general rule is that taxpayers under the pro-SME regime pay taxes on their income; 2) there is a special rule under the Income Tax Law, however, that the SME doesn’t include it in ...