Chile Tax Agency Seeks Comments on Draft Circular on VAT Exemption for Cultural Services

The Chilean Internal Revenue Service Dec. 28 opened a consultation on a draft circular, to establish VAT exemption for cultural services provided by cultural associations. The draft circular includes measures to: 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) establish the types of cultural associations with specific conditions; 4) emphasize the predominance of ...