Global

Details

  • Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 3/7/2014

Chile - Changes to foreign tax credit rules 

March 7:  Changes to the income tax law in Chile affect the credit claimed for income taxes paid or withheld abroad.

Law No. 20.727 (published in the official gazette on 31 January 2014) modifies Articles 41 A and 41 C of Chile’s income tax law—measures that govern the use of credits claimed against income tax on taxes paid or withheld abroad.


In general, the amount of the taxes paid abroad that can be claimed as a credit for Chilean income tax purposes is increased—i.e., an increase from the current rate of 30% of the amount of net foreign source income, to:


  • 32% relating to income from countries with which there is no income tax treaty
  • 35% relating to income from countries with which there is an income tax treaty

In addition, the type entity for which taxes are paid or withheld abroad and that may generate a credit for foreign taxes is expanded.


Read a February 2014 report [PDF 127 KB] prepared by the KPMG member firm in Chile: Tax & Legal Newsletter




©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now