Chile Tax Agency Clarifies Individual Income Tax Treatment of Foreign Individuals Re-Establishing Domicile, Residence

The Chilean Internal Revenue Service March 10 issued Letter No. 602, clarifying the individual income tax treatment of foreign individuals re-establishing domicile or residence in Chile. The taxpayer, a foreign individual, previously acquired domicile and residence in Chile and was taxed on Chilean-source income for the first three years, then on worldwide income for the remaining period. The taxpayer sought clarification on whether, if he returned to Chile after six years of domicile and residence abroad, the same taxation provision under the Income Tax Law (LIR) would apply again, even though he lost his Chilean domicile and residence status due ...