Chile Tax Agency Clarifies VAT Exemption for Cultural Services

The Chilean Internal Revenue Service Jan. 17 issued Resolution No. 6, clarifying the VAT exemption for cultural services. The resolution includes measures: 1) define “cultural services” as those directly linked to research, training, mediation, management, production, creation, and dissemination of cultures, arts, and heritage; 2) provide criteria for cultural associations’ eligibility, distinguishing between those exclusively made up of natural persons and other entities, with requirements such as a maximum of 35 percent income from non-cultural activities; 3) emphasize the predominance of personal work over capital for tax classification; and 4) taxpayers must submit the relevant tax documents and present sworn ...