Chile Tax Agency Clarifies Taxation of Imported Medicine

The Chilean Internal Revenue Service Nov. 12 issued an order clarifying the tax treatment of imported medicines, including associated intellectual property rights. The order clarified that: 1) a 19 percent VAT applies to imported medicine; 2) no tax is levied under the income tax law (LIR) for imported medicine; and 3) an additional 30 percent tax applies to charges for the intellectual property rights related to imported medicine. [Chile, Internal Revenue Service, 11/12/19]

Reference:
View Order No. 2805 of 12/11/2019. View Index.