Author: Antonia Echeñique

The Internal Revenue Service (SII), through Office No. 1778 dated August 27, 2018, has clarified the taxation applicable to the benefits obtained from a Foundation established abroad.

The Internal Revenue Service (SII), through Office No. 1778 dated August 27, 2018, has clarified the taxation applicable to the benefits obtained from a Foundation established abroad.

Recently, the SII issued the Exempt Resolution No. 55, dated July 5, 2018, updating the list of countries and jurisdictions considered to have a preferential tax regime.

This report gives an account of Exempt Resolution No. 46 of the SII, dated May 18, 2018, which established the obligation to submit an Annual Statement on Trusts, setting the format and mechanism for making such a declaration.

Before September 30 of each year, the SII will automatically send to the countries with agreement, the information collected annually on financial accounts related to persons with Tax Residence Abroad and, in turn, the SII will receive, on behalf of the rest tax authorities in agreement, the information on the financial accounts that tax residents of Chile have in foreign financial institutions. This report includes the main countries in agreement with which information will be shared.

The Common Reporting Standard or CRS is an agreement signed by Chile with the OECD whose main objective is to share information on financial accounts of clients with fiscal or tax residence in any Participating Jurisdiction. This report summarizes the main aspects of the normative context of the CRS.

These taxpayers, apart from complying with the obligation to declare or pay their taxes for investments abroad, must also comply with certain special obligations of registry or declaration before the tax authority regarding their direct investments or in foreign companies or entities.