Chile Tax Agency Clarifies VAT on International Financing Operations

The Chilean Internal Revenue Service June 4 issued Letter No. 1453, clarifying the VAT rules on the territoriality of international financing services. The letter clarifies that: 1) commissions charged by foreign taxpayers for international financing services rendered abroad aren’t taxed in Chile, provided these operations aren’t financed or used in Chile; and 2) the taxation for resident taxpayers paying a commission to obtain foreign financing to acquire an investment must be determined on a case-by-case basis. [Chile, Internal Revenue Service, 06/04/21]

Reference:
View Letter No. 1453. View Index.