Chile Tax Agency Issues Resolution Establishing VAT Withholding Rules for Specific Intermediaries in Digital Services

The Chilean Internal Revenue Service May 13 issued Resolution No. 46, establishing new VAT withholding rules for specific intermediaries involved in making payments for digital services to nonresident providers. The resolution includes measures that: 1) apply to payment intermediaries such as banks, bank transfer support companies, saving and credit cooperatives, and non-bank issuers that allow payments to be made to nonresident providers of digital services; 2) require the payment intermediaries to withhold and remit VAT under the simplified tax regime when the beneficiaries of digital services aren’t VAT taxpayers; 3) require the payment intermediaries to declare the VAT collected and ...