Chile Tax Agency Clarifies Criteria for Special Capital Gains Tax Regime for Specified Securities

The Chilean Internal Revenue Service Sept. 3 issued Letter No. 1750, clarifying the criteria for the special capital gains tax regime sales or redemptions of specified Chilean-listed securities. The taxpayer, an entity, sought clarification regarding when the condition of stock market presence of shares, including investment fund shares, must be met under the regime. Upon review, the Tax Agency clarified that: 1) the Financial Market Commission has established that stock market presence isn’t a permanent attribute or condition of the instrument, but a quality that can be obtained, maintained, or lost based on market position; 2) the Income Tax Law ...