Amends Decree Law No. 824, On Income Tax; Decree Law No. 825, On Sales Taxes And Services, 1974 The Code Tax, Internal And Other Legal Standards Tax Services Organic Law

Original Language Title: MODIFICA EL DECRETO LEY Nº 824, SOBRE IMPUESTO A LA RENTA; EL DECRETO LEY Nº 825, SOBRE IMPUESTOS A LAS VENTAS Y SERVICIOS, DE 1974 EL CODIGO TRIBUTARIO, LA LEY ORGANICA DE SERVICIOS DE IMPUESTOS INTERNOS Y OTRAS NORMAS LEGALES

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"Article 1.-Introducense the following amendments to the income tax Act, contained in the article 1º of Decree Law No. 824, 1974: 1-replaced in the final paragraph of article 14 bis paragraph:" these taxpayers must pay the taxes that are applying the rules of the second and third subparagraphs of that article, as if put term to its shift to December 31 of the year in which give notice. "" , by the following: "these contributors and those who are in the situation referred to in the ninth paragraph of this article, shall apply the rules of second and third paragraphs as if they put term to its shift to December 31 of the year in which give notice or the previous year, respectively, paying taxes that apply either, which must always declare according to full accounting" (, register starting on 1 January of the year following such income in the taxable utilities Fund established in the letter A) of article 14 as affected global tax supplementary or additional, non-articles 56, number 3 credits), and 63. "."

2. in article 21, subsection first, added, then the expression "created by law" the phrase ", the payments referred to in article 31, no. 12 °, in the part which can not be deducted as expenditure".

3.-in articles 22 and 26 bis: to) in article 22, replaced the No. 5 by the following: "5.-artisanal fishermen registered in the register established for that purpose by the General Law of fisheries and aquaculture, which are natural persons, qualified as artisan named owners exploit one or two ships that together, does not exceed 15 tons of thick Registry."
To determine the thickness of the ships without cover registered tonnage, it is estimated as the result of multiplying the length by the sleeve, strut and 0.212 factor, expressing the dimensions of the ship in metres.
In the case of ships with deck, which do not have certificate of the maritime authority attesting to its gross registered tonnage, it is estimated as the result of multiplying the length by the sleeve, strut and the factor 0.279, expressing the dimensions of the ship in metres. "."

(b) replace article 26 bis with the following: "article 26 bis.-artisanal fishermen set out in number 5 of article 22, shall pay as a tax of this category an equivalent amount a: - half monthly, existing tax unit in the last month of the respective financial year, craft owners of one or two artisanal vessels which, as a whole, not to exceed four tons of thick Registry;"

-A current, monthly tax unit in the last month of the respective exercise, craft owners of one or two craft ships which, together, have about four and up to eight tons of thick Registry, and - two monthly tax units existing in the last month of the respective financial year, craft owners of one or two ships which, together, have about eight and up to fifteen tons of thick Registry. "."

4.-in article 31: to) be inserted as a new second paragraph, the following: "subject as indicated in the preceding paragraph, expenses incurred abroad shall be credited with the corresponding documents issued abroad in accordance with the legal provisions of the respective countries, provided that it falls within them, at least, individualization and domicile of the provider of the service or the seller of the property acquired as appropriate the nature or object of the operation and the date and amount of the same. The taxpayer must file a translation into Spanish of such documents when requested by the internal revenue service. Even in the case that there is the respective document support, the Regional Directorate may accept the expense deduction if in his opinion it is reasonable and necessary for the operation of the taxpayer, according to factors such as the relationship between sales, services, expenses or revenues and disbursement concerned of same or similar nature of contributors that develop in Chile the same activity or a similar. "."

(b) add the following number 12th, new: "12.-payments carried out abroad by the concepts referred to in subsection first article 59 of this law, up to a maximum of 4% of revenues for sales or services, of the giro, in the corresponding fiscal year.
The limit established in the preceding paragraph shall not apply when, in the respective period, between the taxpayer and the beneficiary of the payment there, or has there been direct or indirect relationship capital, control or administration of one or the other. To make applicable the provisions of this subsection, within two months of the term of the respective financial year, the taxpayer or his legal representative, you must make an affidavit on which point in this exercise has not been indicated relationship. This statement must be retained with the background of the respective annual declaration of income tax, to be presented to the service when it required. Which maliciously subscribe a false sworn statement shall be punished in accordance with article 97, number 4 of the tax code.
Nor the limit established in subsection first on this issue, if the country of residence of the beneficiary of the income this is taxed with income tax rate equal to or greater than 30% will apply. The Ministry of finance, ex officio or at the request of the party concerned, be established by Supreme Decree the list of countries that find themselves in this situation.
To determine whether the amounts paid by the concepts referred to in subparagraph first of this number are not within the limit there indicated, all payments resulting from the provisions of subparagraphs second and third must be added first. The remaining payments will be added below those. "."

5. in the tenth paragraph of the number 3 of article 34 bis, add after the word "previous" expression "and the 2nd number".

6. in article 38, agreganse following paragraphs, new: "when the prices that the agency or branch to its parent or to another agency or related company of the parent company, copper do not conform to values that for similar operations be charged between independent enterprises, the Regional Directorate can challenge them founded, taking as a basis of reference for these prices a reasonable profit to the characteristics of the operation , either production costs a reasonable profit margin. Same rule applies with respect to prices paid or owed for goods or services provided by the head office, its agencies or related companies, when those prices do not conform to the normal prices of market between parties not related, and can be considered, in addition, the prices of resale to third parties of goods acquired from an associated company, less the profit margin observed in similar transactions with or between independent undertakings.
In the event that the Agency do not equal type of operations with independent companies, the Regional Directorate can challenge founded prices taking into account values that have products or services on the international market. For this purpose, the Regional Office will have report to national customs service, the Central Bank of Chile or organisms that have the required information.

Also, the Regional Directorate can refuse founded as expenditure necessary to produce income, the excess determined for the amounts due or paid in respect of interests, commissions and any other payment arising from credit or financial operations with the parent company or another agency of the same, or with an institution in which have participation of at least 10% of the capital headquarters.

In the three preceding subparagraphs shall apply, too, when a company incorporated abroad participate directly or indirectly in the management, control or capital of a company established in Chile, or vice versa. In the same way will apply when the same persons participate directly or indirectly in the management, control or capital of an enterprise established in Chile and an undertaking established abroad. "."

7 added to letter A of article 41 to the following no. 3, new, becoming the current 3 and 4, N ° s. 4 and 5: "3.-in the event in the country source of dividends or withdrawals of social utilities there is withholding income tax, or this is less than the tax of first category of Chile, may deduct it as credit the tax paid by the income of the company abroad, or the part that corresponds apply to this effect the provisions in number 1 of the letter A of article 41 C. In all this credit must be adjusted to the rules laid down in this article.

In the same situation before, also entitle to credit the income tax paid by a partnership on the part of the utilities that distribute the company that shipment such utilities to Chile, always that both are domiciled in the same country and the second directly owns 10% or more of the capital of the first. "."

8 Add the following article 41 C, new:
"Article 41 C-domiciled taxpayers or residents in the country, which affected the first category tax rents of countries with which Chile has signed agreements to avoid double taxation, that are in force in the country and who has committed the granting of a credit for the income tax paid in the respective partner States apply the rules contained in articles 41 A and 41 B, with the exceptions that are set out below: a. total credit available 1.-in the case of capital gains, dividends and withdrawals of social utilities, shall be deemed also to the income tax paid by the income of the company or abroad and, in the case of the operation of an agency or permanent establishment , the tax that would tax remittance.

Also entitle to credit the income tax paid by a partnership on the part of the utilities that distribute the company that shipment such utilities to Chile, always that both are domiciled in the same country and the second directly owns 10% or more of the capital of the first.

For the purposes of the calculation is this number, with respect to the tax of the company or foreign, attributable to the profits of capital, dividends or withdrawals of social utilities, shall be presumed that the tax paid to the other State by the respective incomes is that depending on the nature of the income corresponds to apply in that State and is in force at the time of remittance distribution or payment. Also, this tax will be considered proportionately in relation to the profits of capital, dividends or withdrawals of earnings received in Chile. For these purposes you recompose gross based on income proportionally corresponding to dividends or profit at the level of the company from which they are paid, adding the withholding tax and the tax income of the respective company.

2.-for each income credit will be the lesser amount between: to) the taxes paid to the other State on the respective income pursuant to the previous number.

(b) 30% of such an amount that, to subtract the 30%, the resulting amount is the net amount of the perceived, or perceived or income accrued in the case of income from agencies or permanent establishments, for which the credit is calculated.
The sum of all the credits determined according to the rules of the previous paragraph on incomes which must be taxed in accordance with this law at the end of a year and that have their source in the other States counterpart of Chile, will constitute the total credit available from the respective taxpayer for that year.
Total available credit will be deducted from the global premium and final taxes, tax supplementary and additional, in the form indicated in the letters that follow.

B credit against the first category in the case of the first category tax tax, the respective credit will be calculated and applied according to the following rules: 1.-will be added to the base of the first category tax available total credit determined in accordance with the letter to previous standards.

2. the first category tax deductible credit will be equal to the amount resulting from applied the rate of this tax on the sum of the total credit available over the respective foreign incomes.

C credit against taxes late the amount resulting after subtracting the total credit available credit of first category set out in preceding shall constitute the credit against final tax, i.e. it be deducted from the global tax supplementary or additional, according to the following rules: 1.-in the event that the incomes from foreign source that are entitled to the credit that comes to this article have been obtained by taxpayers forced to determine its liquid income taxable according to accounting (complete, the following rules shall apply: to) against the final tax credit score separately in the register of the Fund's taxable profits corresponding to the year in which obtained foreign source income that originates such credit.

The credit thus registered or your balance, shall be adjusted in accordance with the variation of the price index the consumer between the last day of the month prior to the end of the year in which they originated and the last day of the month prior to the end of each year, or until the last day of the month prior to the retention in the case of the additional tax subject to this modality.

(b) the credit against taxes late in the above form will be considered distributed to shareholders, partners or individual entrepreneurs, together with distributions or withdrawals of utilities that must be attributed to taxable earnings for the year in which such credit has been generated. To this effect, the distribution of the credit shall be made proportionally according to the percentage that represents the number of the respective dividend or removal of utilities attributable to the year in question with respect to the total of proceeds derived in that year.

(c) if in the year in which occurs the credit the taxpayer losses, such credit shall terminate completely. If the losses from future periods absorbed earnings for the year in which the credit is generated, this expires later applying the same standard letter b) precedent, when appropriate.

(d) if the profits or dividends originating credit against taxes late distribution are, in turn, perceived by other taxpayers forced to determine your taxable liquid income according to full accounting, these taxpayers should apply the same standards of this number.

2.-when the incomes that are entitled to this credit are distributed, withdrawn or be considered earned, by Global complementary or additional tax taxpayer, the following rules shall apply: to) against final tax credit will be added to the basis of complementary or additional global tax, properly reset. As regards the additional withholding tax, will also apply reset which proceed by the variation of the price index to consumer occurred between the last day of the month prior to the retention and the last day of the month prior to the closing of the exercise which corresponds to the respective annual statement, and b) referral credit will be deducted from the specific additional or complementary global tax. If there were a remnant of credit, this will not refund or imputation to other taxes or may recover in the aftermath. "."

D.-credit for personal services taxpayers without losing the domicile or the residence in Chile, received foreign incomes classified in numbers 1 ° or 2 ° of article 42, failing as a credit to single tax established in article 43 or complementary global tax to that referred to in article 52, the income tax paid or withheld for the same income derived by activities carried out in the country in which they obtained revenues.
In any case the credit may not exceed 30% of a number which to subtract this percentage, the resulting amount is the net amount of the perceived income for which the credit is calculated. If the tax paid or withheld abroad is less than the credit, shall deduct the lesser amount. In any case, a sum equal to the external tax credit will be added to the declared foreign income.
Taxpayers who obtain income, referred to in number 1 of article 42, shall be carried out annually a reassessment of tax, for the months in which perceived affected to double taxation income, applying the scales and rates of the respective month and updating the tax that is determined and the paid or retained, according to the variation experienced by the index of prices to the consumer in the period between the last day of the month prior to the determination of , payment or retention, and the last day of the month preceding the date of exercise. Excess by double taxation resulting from the comparison of taxes paid or withheld in Chile and the reassessment, reduced credit, must be attributed to other annual taxes or returned to the taxpayer by the Treasury service in accordance with the rules of article 97. Equal right to attribution and return will be subject to supplementary global tax taxpayers who do not have income from article 42, number 1st, subject to double taxation.
In the determination of the credit that is permitted in this letter, shall apply the rules of the letter A of article 41 on adjustability and exchange rate. Also provisions on the numbers 3, 4 and 5 (C) of the same article 41 A quoted shall apply. "."

9.-in article 59, introducense the following amendments: to) in subsection first, replace the rate "35%" by "30%";

(b) in the heading of the fourth paragraph, replace the word "also" by the phrase "with rate 35%";

((c) in the final paragraph of the number 1), delete the phrase "and not that of the first paragraph of this article";
((d) in the second paragraph of number 2), replacements sentences that follow the expressions "produced in the country", to the point apart from this paragraph, by the following sentence: "and payments, be considered reasonable in the opinion of the tax service inmates, owing to this effect taxpayers communicate them, in the manner and time set by the Director of the service." ((, and e) in the third paragraph of number 2), replace the final sentence that begins with the expressions "or currency", by the following: "and be approved by the tax service inmates, in accordance with the rules and the effect given.".

10.-in article 68: to) be added as a new second paragraph, the following: "However, taxpayers who declare in the form established in the final subparagraph of article 50, are not obliged to take accounting and no other record or book of daily income.".

((b) insert in) (b) of the second paragraph, and "professional" expressions ", may" the following phrase: "and welcomed the provisions of the final paragraph of article 50".

(11. in article 84, letter e), add after the semicolon (;) that happens to be followed dot (.) the phrase: "is excepcionaran of this obligation natural persons whose presumption of certain income in each month of commercial exercise respective, on all of the vehicles that explode, does not exceed a yearly tax unit;".