It Establishes Tax Rules For Companies With Capital From Abroad To Carry Out Investments From Chile Abroad


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"(Artículo 1º.-Introdúcense las siguientes modificaciones en la Ley sobre Impuesto a la Renta, contenida en el artículo 1º deel decreto ley Nº 824, de 1974: 1) add, in the second paragraph of article 10, after the separate dot (.), that happens to be followed dot (.), as follows:"also are Chilean source incomes which originate in the alienation of shares or rights social or representative of a legal person constituted in foreign capital " to a person domiciled, resident or established in the country, which allow, directly or indirectly, owning property or in the profits of another company incorporated in Chile. In any case, shall not constitute income the sum obtained from the alienation of shares or concerned social rights, while the participation, which is acquired directly or indirectly from the company incorporated in Chile, represent 10% or less of the capital or profits or the purchaser under a partner or shareholder common with her than directly or indirectly, owns or participate by 10% or less of the capital or profits. "."

(2) replace, in the second paragraph of the number 5 ° of article 31 °, the expression "five years" for "three years".

(3) Agreganse, in article 38, the following final clauses: "Likewise, shall be presumed the relationship of the preceding paragraph with regard to companies that agreed exclusivity contracts, agreements for joint action, preferential treatments, financial or economic dependence, or trust deposits. Equal presumption will proceed when the operations are made with companies who are established in a country or territory included in the list referred to in no. 2 of article 41 D.

Taxpayers must keep a record with the identification of people who do any operations or have participation, in the terms referred to in the two preceding subparagraphs, keeping both this record and the documentation that realize those operations available to the internal revenue service when required it. "."

(4) add, then article 41 ºc, the following article 41 D: "article 41 D-to open corporations and closed corporations agreed in its articles of Association subject to the rules governing them, constituting in Chile and in accordance with Chilean law with foreign capital which is maintained at all times in full property possession and holding of partners or shareholders meeting the requirements indicated in number 2, les will only applicable provisions of this article in lieu of the other provisions of this law, except those that require withholding taxes affecting third parties or provide information to public authorities, with respect to the contribution and withdrawal of capital and income or earnings to obtained from activities that perform abroad , expenses and disbursements to be carried out on the development of them. The same treatment shall apply to the shareholders of these companies domiciled or resident abroad by remittances, and distributions of profits or dividends to obtained from these and by partial or total returns of capital from abroad, as well as the highest value obtained in the alienation of the shares in the companies benefiting from this article , with the exception of the proportion corresponding to investments in Chile, in the total of the assets of the company. For the purposes of this law, these societies will not be considered domiciled in Chile, so it will be taxed in the country only by Chilean source income.

The concerned companies and their partners or shareholders must comply with the following obligations and requirements, while the society is host to this article: 1. have exclusive object of investments at home and abroad, in accordance with the rules of the present article.

2. the shareholders of the company and the partners or shareholders of those, which is a legal person, and having 10% or more of participation in the capital or profits of the first, must not be domiciled or resident in Chile, or in countries or territories which are considered as harmful preferential tax regimes and tax havens by the Organization for economic cooperation and development. By Supreme Decree of the Ministry of finance, which can be changed as often as necessary at the request of party or ex officio, shall be determined the list of countries that find themselves in this situation. For these purposes, only will be considered in this list States or respective territories included in the list of countries which periodically establishes the Organization of economic cooperation and development, or harmful preferential tax regimes and tax havens. In any case, shall not apply the foregoing if at the time of become the society in Chile and already made corresponding contributions, the shareholders of the company and the partners or shareholders, if they are legal persons, were not resident or domiciled in a country or territory that, subsequent to such facts, is included in the list referred to in this issue. Equal criteria shall apply with respect to investments carried out abroad in relation to the time and the amount actually invested at that date.

Without prejudice to the above restriction, they may purchase shares in the companies benefiting from this article persons domiciled or resident in Chile, provided that as a whole they do not possess or participate directly or indirectly 75% or more of the capital or the utility of them. Apply to these persons the same rules that this law provides the shareholders of corporations incorporated outside the country, including the income tax to capital gains to be determined at the disposal of the shares in the company covered by this article.

3. the capital provided by the foreign investor must have its source of origin abroad and shall be made in freely convertible foreign exchange through any of the mechanisms established by Chilean law for capital inflows from abroad. Equal treatment will have earnings arising referred capital. Also, the return of these capital must be in foreign currency freely convertible, subject to foreign exchange regulations in force at that date.

Notwithstanding the provisions of the preceding paragraph, the capital may become aware in actions, as also in social rights, but companies domiciled abroad of people's property without domicile nor residence in Chile, valued them at its stock price or books, as appropriate, or acquisition in the absence of the first.

In any case, the society may borrow, but credits earned abroad may not exceed at any time the sum of capital by foreign investors and three times to that provided by investors resident or domiciled in Chile. In the event that participation in the capital of the investor resident or domiciled abroad increases either that the capital decrease by the same returns, the society shall, within the period of sixty days from the occurrence of these events, conform to the new relationship designated deuda-capital.

In any case, appropriations concerning this issue, will be subject to standards law General stamps and stamps and interests to the tax established in article 59, number 1), of this law.

4. the company must carry full accounting in foreign currency or local currency if you choose to do so, and entered in a special register in charge of the internal revenue service, in lieu of the provisions of article 68 of the tax code and must inform, periodically, via sworn statement to this body, the fulfilment of the conditions laid down in paragraphs 1 2, 3, 5 and 6, as well as every entry of capital into the country and investments or any other operation or remittance abroad which takes place, in the form, term and conditions provided by that service.

The delivery of incomplete or false information in the affidavit referred to in this number, shall be punished with a fine of up to 10% of the amount of the investments made by the company, and can in any case be such fine less than the equivalent of 40 annual tax units which will be attached to its application to the procedure laid down in article 165 of the tax code.
5. Notwithstanding its unique object, the societies under this article may provide services paid to companies and firms referred to in the next issue, related to the activities of the latter, as also invest in companies incorporated in Chile. They must apply the tax established in paragraph 2) of article 58, entitled to the credit referred to in article 63, the utilities that agree to distribute the companies benefiting from this article, as appropriate. Shareholders domiciled or resident in Chile referred to the number 2., second paragraph of this article, who receive income originating in the above utilities, will apply with respect to them the same rules as the law provides for the shareholders of corporations constituted outside the country, and in addition, with the right to a credit with the article 58 ° tax rate (, number 2), applied in the arranged form in B-and C-article 41 C.-this law.

Companies benefiting from this article, which invested in companies incorporated in Chile shall distribute profits starting with the oldest, recording separately which come from societies constituted in Chile from those obtained outdoors. For the purposes of calculating the recoverable credit referred to in the final part of the preceding paragraph, society should consider the utilities that are distributed, affected by the referred tax, to correspond to all of its shareholders in proportion to the existing ownership of shareholders resident or domiciled in Chile and non-residents or domiciled in the country.

Companies benefiting from this article please let taxpayers and the internal revenue service the amount of the amount entitled to credit that proceed to deduct.

6. investments which constitute its corporate purpose shall be carried out by social or equity contribution or other securities that are convertible into shares, in accordance with the rules laid down in article 87 of the law Nº 18,046, in companies incorporated and formally established abroad, in a country or territory other than those indicated in number 2 , of this article, for the conduct of business activities. In a case that concerned business activities not are carried out abroad directly by listed enterprises, but by subsidiaries or joint ventures of those or through a sequence of subsidiaries or joint ventures, the companies that generate the respective incomes must meet in any case demands of this number.

7. the value obtained in the alienation of the shares of the investment in a company to the provisions of this article will not be fond of taxes of this law, with the exceptions referred to in the first paragraph and the second paragraph of number 2. However, the total or partial disposal of such shares to natural or legal persons domiciled or resident in any of the countries or territories indicated in paragraph 2 of this article or to subsidiaries or affiliated companies direct or indirect of them, will produce the effect of that, both the company and all its shareholders will be subject to the general tax system established in this law , especially in relation to dividends, distributions of profits, remittances or refunds of capital that occur from the date of the alienation.

8.-the companies benefiting from the rules laid down in this article, do not apply to provisions on secrecy and Reserve Bank established in article 154 of the General banking law. Any information regarding this matter should be provided through the internal revenue service, in the form in which it is determined by means of a regulation contained in a Supreme Decree of the Ministry of finance.

9 non-compliance with any of the requirements referred to in this article will determine full implementation of this law tax from the incomes of the calendar year in which the contravention occurs. "."

((5) add, in number 2) of article 58, the following final clauses: "will also pay this tax, in character only, persons domiciled or resident abroad, by the income referred to in the second part of the second article 10 paragraph, determined pursuant to the rules of the third article 41 paragraph, considering the value of books of the rights of the company incorporated in Chile" which have direct or indirect participation the acquirer, if this is a society of people, or the value referred to in subsection second number 8 of the article 17th, if it is an anonymous and society, as the value of alienation, the agreed with the seller domiciled or resident abroad, in the proportion that represents the value book society established in Chile in the equity value of the company whose shares or rights alienated. For these purposes, the buyer must make a statement sworn before the internal revenue service, in the form and time that it determines in which, along with identifying the seller and the society whose rights or actions alienated, shall point out the equity value of the company and any other information or history related to the operation, requiring this service.

With all the taxpayer or withholding agent on your behalf, may, in lieu of the former tax, opt to undergo the tax regime which would have corresponded to apply have been alienated in the country actions, or social rights of the entity established in Chile, and whose possession determines the affectation to the referred tax. "."