Chile Tax Agency Clarifies VAT Rules for Special Construction Company Credit, Urban Housing Development

The Chilean Internal Revenue Service Feb. 4 issued Letter No. 285, clarifying VAT rules for the special construction company credit (CEEC), and urban housing development. The taxpayer, an urban housing development sponsor, sought clarification on the CEEC and VAT rules concerning the construction of social housing benefiting from certain state subsidies. The Tax Agency clarified that: 1) the taxpayer could request the CEEC at 32.5 percent or 16.25 percent, if requirements like the urban development being related to housing were met; 2) the construction wasn’t part of a general construction contract with an objective to construct housing and, therefore, didn’t ...