It Introduces Modifications To The Law On Income Tax; Modifies The Value-Added Tax Rate; Established Benefit To Donations For Educational Purposes And Modifies Other Texts Legal Indicating

Original Language Title: INTRODUCE MODIFICACIONES A LA LEY SOBRE IMPUESTO A LA RENTA; MODIFICA TASA DEL IMPUESTO AL VALOR AGREGADO; ESTABLECE BENEFICIO A LAS DONACIONES CON FINES EDUCACIONALES Y MODIFICA OTROS TEXTOS LEGALES QUE INDICA

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"(Artículo 1°.-Introdúcense las siguientes modificaciones a la Ley sobre Impuesto a la Renta, contenida en el decreto ley N° 824, de 1974: a) in article 12, delete the expression"or accrued"and added, after the separate, that happens to be followed, the following sentence:" in the case of agencies or other permanent establishments abroad "" the incomes perceived as the accrued, including the income taxes owed or paid abroad will be considered in Chile as.
((b) in article 14, letter A), number 1-point (c)), add the following final paragraph: "this letter also will proceed with respect to withdrawals of utilities that are carried out or of dividends received from companies established abroad. However, it shall not apply with respect to investments carried out in these enterprises. "."
(c) in the first paragraph of article 20, replace the figure "10%" by "15%".
(((d) in article 33, number 2, letter to), add after the word "contributor" prayer "as does not come from societies or companies incorporated outside the country, even though they have lodged pursuant to Chilean law", and in point (b)), after the word "special", add the word "Chilean".
(e) in the first subparagraph of article 33 bis, replace the figure "% 2" "4%".
(f) add, then of article 41 bis, the following paragraph 6 °: "paragraph 6 ° of double international taxation rules.
Article 41 a.-taxpayers domiciled or resident in Chile who obtain income from abroad which have been taxed abroad, in the application of taxes of this law shall be subject, with respect to such income, moreover, by the standards of this article, in the cases listed below: a. dividends, withdrawals of profits and other incomes.
Taxpayers who receive dividends or make withdrawals of profits of companies incorporated abroad or earning outside income by the use of trademarks, patents, formulas, technical advisories and other post-retirement benefits, should consider the following rules for the effects of applying the first category tax such income: 1. Add liquid first category tax taxable income an amount determined in the manner indicated in number 2.-next equivalent to taxes which have had to pay or that it had retained them abroad by received dividends or withdrawals of utilities made societies or incomes received by use of trademarks, patents, formulas, technical advisories and other similar benefits to that referred to in this letter. For these purposes, cited income and taxes paid or withheld will be converted to national currency, according to the exchange rate set in number 6 of title I of the compendium of rules of international changes, or that the Central Bank of Chile establishes in its replacement, the date of the perception of income, payment or withholding tax.
The quantity indicated in the preceding paragraph shall not exceed the credit which is set at the number below.
2. taxpayers referred to in this letter shall be entitled to a credit equal to the result of applying the tax rate of first category on such an amount, to deduct the credit of that amount, the result results in an amount equal to the liquid amount of dividends or withdrawals or rents for use of marks patents, formulas, technical advisories and other similar benefits perceived from the outside. To perform this calculation, dividends or withdrawals or rents for use of trademarks, patents and formulas, technical advisories and other similar benefits will be considered adjusted by the variation of the price index the consumer between the last day of the month preceding the of their perception and the last day of the month prior to the closing of the respective exercise. In any case, the credit may not exceed the tax actually paid or withheld abroad, adjusted in the same way to the end of the year from the date of its payment or retention.
3. the credit determined in accordance with the preceding rules shall be deducted from the first category tax payable by the taxpayer for the exercise in which perceived dividends or withdrawals or rents for use of trademarks, patents, formulas, technical advisories and other similar benefits from abroad.
This credit will be applied then those credits or deductions that do not give right to refund and before those that allow it.
4. in the case of taxpayers subject to the first category by their Chilean income tax, forced to take accounting, the surplus of the credit defined in the previous numbers will fall in the same form to the first category of the following financial year tax later. To this effect, the remnants of credit must be reset according to the variation of the price index consumer between the last day of the month preceding the term for the year in which occurs the remnant and the last day of the month prior to the closing of the following or subsequent financial year. The taxpayer will not impute the remnants of any other tax credit or is entitled to its return.
B income from agencies and other permanent establishments.
Taxpayers who have agencies or other permanent establishments abroad, should consider the following rules for the purposes of applying the first category tax on the result of the operation of such establishments: 1.-these contributors will add liquid first category tax taxable income an amount equal to the taxes that are owed to the following financial year , or have paid, abroad, income from the agency or permanent establishment to be included in such liquid taxable income, excluding the withholding tax applied on utilities that are distributed. Only taxes owed until the next period, or paid by foreign commercial exercise that ends within the respective Chilean commercial workout or match this will be considered for this purpose.
The indicated taxes will be converted to national currency according to the exchange rate established in article 41, number 5, existing at the end of the year.
The amount that is added by application of this number, shall not exceed the credit that is set to the next number.
2. taxpayers referred to in this letter, will be entitled to a credit equal to the result of applying the tax rate of first category on such an amount to deduct the credit of that amount, the outcome results in an amount equal to the taxable income of liquid from the agency or permanent establishment. In any case, the credit may not exceed the tax owed to the following financial year, or paid, overseas, considered in the previous issue.
3. the credit determined in accordance with the preceding rules, shall be deducted from the first category tax payable by the taxpayer for the corresponding year.
This credit will be applied then those credits or deductions that do not give right to refund and before those that allow it.
4. the surplus of credit defined in previous issues, will fall in the same form to the first category of the next and subsequent exercise tax. To this effect, the remnants of credit must be reset according to the variation of the price index consumer between the last day of the month preceding the term for the year in which occurs the remnants, and the last day of the month prior to the closing of the following or subsequent financial year. The remnants of credit may not be attributed to any other tax or is entitled to its return.
C common standards.
1. the rules laid down in paragraphs A and B, shall apply only with respect to taxpayers who have materialized the corresponding investment abroad through the formal foreign exchange market.
2. in order to make use of credit established in previous letters, taxpayers must previously register in the register of investment abroad that will take the internal revenue service. This body will determine the formalities of registration to be met by taxpayers to register.
3 shall be entitled to credit the income tax paid or withheld abroad provided that they are equivalent or similar to the taxes contained in the present law, or substitute them, whether they apply on incomes certain results real or alleged income. Credits provided by foreign legislation to external tax, will be considered as part of the latter. If the total or part of a tax income is creditable to other tax income, with respect to the same income, he cut the first of the second, in order to not generate a duplicity to accredit the taxes.
4. taxes paid by companies abroad must prove by receipt or an official certificate issued by the competent authority of the foreign country, properly legalized and translated if appropriate. The Director of the internal revenue service may require the same requirements with respect to taxes withheld, where it considers it necessary for the due protection of the fiscal interest.
5. the Director of the internal revenue service may appoint auditors of the public or private sector or other Ministers of faith, so you must check the effectiveness of payments or retention of the external tax, return of capital invested abroad, and the fulfilment of the other conditions specified in this paragraph and in paragraphs A and B above.
Article 41 B-the taxpayers having foreign investment and foreign source income may not be applied, with regard to investments and revenues, the numbers 7 and 8 with the exception of the letters f) and g), article 17, and in articles 57 and 57 bis. However, these taxpayers may return to the country the capital invested abroad without being subject to taxes of this law up to the amount invested, provided that the respective sum is previously registered with the internal revenue service in the way established in paragraph 2 of point C of article 41 A, and is credited with instruments public or certificates of competent authorities of the foreign country duly authenticated. In cases in which can not be counted with the aforementioned documentation, the Director of the internal revenue service may authorize that you credited the reduction or withdrawal of capital, by means of certificates or reports of external auditors of the respective foreign country, also duly authenticated.
Companies incorporated in Chile who declare their effective income according to accounting, shall apply the provisions of this law with the following modifications: 1.-in the event they have agencies or other permanent establishments abroad, the result of gains or losses that will be recognized in Chile on perceived or accrual basis. This result shall be calculated by applying the provisions of this law on determination of the tax base of first category, with the exception of the deduction of the loss of previous years prepared in the second paragraph of the N ° 3 of article 31, and will be added to the liquid, taxable income of the company at the end of the year. The result of foreign income will be determined in the currency of the country in which is based the agency or permanent establishment and will be converted to currency according to the rate of Exchange established in article 41, N ° 5, existing at the end of the year in Chile.
They must be recorded in the Fund's taxable profits, referred to in article 14, the result received or accrued abroad that is part of the liquid, taxable income.
2.-with respect to the N ° 1-letter to), second paragraph, of the letter A), article 14, not considered as income earned in other companies incorporated abroad in which have participation.
3. they shall apply article 21 by headings that apply to agencies or permanent establishments that have overseas.
As fourth and sixth subparagraphs of article 21 provisions, you should understand just application to societies of persons constituted in Chile.
4. investments in shares, rights and social agencies or permanent establishments abroad, shall be considered as assets in foreign currency for the purposes of the price-level restatement, applying to the connection number 4 of article 41. This value must be deducted to determine from income from the alienation of shares and social rights, increase or decrease it previously with new investments or withdrawals of capital, according to the exchange rate prevailing at the date of the alienation. Taxpayers who are not subject to the regime of monetary correction assets and liabilities, must apply the second paragraph of article 41 to calculate the highest value in the alienation of assets corresponding to such investments. The exchange rate to be applied in this number will be the same of the number 1-the letter A of article 41 A.
5 credits or deductions from the first category tax, in which the law not expressly authorizes its rebate of tax that comes from foreign source income, only be deducted from the tribute that determined by Chilean pensions. Not in the case of income from agencies or permanent establishments having overseas, tax for the part that corresponds to the Chilean incomes will be equivalent to the amount that is applied on the total of the tax, the same percentage that corresponds to the national gross income of the exercise in the total revenue , including those who come from abroad, more credit referred to the number 1-the letter A of article 41 A, where applicable. "."
(g) replace the scale of rates of the number 1.-in article 43, by the following: "income not exceeding 10 monthly tax units, shall be exempt from this tax.
On the part that exceeds 10 and not more than 30 monthly tax units, 5%;
On the part that exceeds 30 and not more than 50 monthly tax units, 10%;
On the part that exceeds 50 and not more than 70 monthly tax units, 15%;
On the part that exceeds 70 and not more than 90 monthly tax units, 25%;
On the part that exceeds 90 and not more than 120 monthly tax units, 35%, and on the part that exceeds 120 monthly tax units, 45%. "."
(h) replace the rates of article 52 scale, with the following: "income not exceeding 10 annual tax units, shall be exempt from this tax.
On the part that exceeds 10 and not more than 30 annual tax units, 5%;
On the part that exceeds 30 and not more than 50 annual tax units, 10%;
On the part that exceeds 50 and not more than 70 annual tax units, 15%;
On the part that exceeds 70 and not more than 90 annual tax units, 25%;
On the part that exceeds 90 and not more than 120 annual tax units, 35%, and on the part that exceeds 120 annual tax units, 45%. "."
i) added in paragraph six of the number 1.-Article 54, after the word "incomes", first appearing, expression "or perceived amounts of companies or companies abroad, the income constituted" and after the word "persons" the expression "constituted in Chile".
(j) replaced article 57 bis, by the following: ' article 57 bis.-persons taxed tax set out in articles 43, N ° 1, or 52 of this law, shall have the right to deductions and credits that are mentioned in the letters that follow, in the form and conditions that, for each case, indicated: a. shares of open joint-stock companies. "
The persons referred to in this article may reduce their taxable income determined on the basis of effective income, and for each marketing year, the following amounts: 1° 20% of the value of effectively invested in shares in payment of open joint-stock companies, which are first owners for more than one year to December 31.
The deductible amounts for this concept may not exceed altogether, each year, the lowest figure among the 20% of the taxable income that comes from effective income of the taxpayer before the rebate which authorizes this number, or 50 annual tax units to 31 December of each year. The remnant that occurs not may deduct from income in the following years.
A percentage of the total amount of received dividends of open joint-stock companies and earnings or capital losses on the disposition of shares of these companies, which have been considered to determine global gross income 2.
The percentage that is deducted is 50% on the part of the aforementioned sum not exceeding 50 annual tax units, and 20% in excess of the said figure. However, the end to lower amount may not exceed net income declared in accordance with the seventh paragraph of article 54 of this law number 1 °.
3° for the application of discounts in this letter, investments, dividends and gains or losses on the disposal of shares, reset according to the variation of the price index the consumer between the last day of the month prior to the investment, perception of the dividend or transfer, where appropriate, and the last day of the month prior to the end of the year.
B other investments.
The persons concerned in this article who choose to invest in instruments or securities that are listed later in those institutions that use the system established in this letter, will be entitled to a credit attributable to global tax supplementary or only the payroll tax, as appropriate or, where appropriate, should be considered a debit tax conditions and form shown below: 1° the instruments or values that can benefit from the mechanism dealing with this letter must be extended on behalf of the taxpayer, in one-man and nominative form. Instruments or values indicated only may be issued or taken by banks, finance companies, insurance companies life, mutual funds, investment funds and pension fund, established in Chile, which for this purpose are referred to as host institutions. Life insurance companies are included in these only in regards to savings accounts associated with life insurance.
Assumed that hold to the before mentioned conditions and comply with the requirements referred to more forward, included within the instruments or values indicated, among others, certificates of deposit, savings accounts, fees from mutual funds, voluntary savings accounts established in article 21 of Decree-Law No. 3,500 , 1980, and savings accounts associated with life insurance. Any instruments a fixed term of less than one year shall benefit from the mechanism of this letter. The internal revenue service will establish the list of puttable instruments benefit from the mechanism dealing with this letter, following a report of the respective Superintendence.
At the time of each investment person must express willingness to avail himself of the mechanism established in this letter to the recipient institution. The receiving institution must record this fact in the document giving account of the investment. Once exercised the option this is indispensable, being the respective instrument or value subject to the rules set out in this letter. In the case of accounts of voluntary savings referred to in article 21 of Decree Law No. 3,500, of 1980, when there are no funds deposited in a calendar year and a new deposit or investment, is made the saver can opt again exercise the option provided for in this issue; When such savings accounts there are funds that are under the general scheme of the Act, tax treatment with the date of the option, which shall apply from the first withdrawals carried out, accusing these assessments for older will remain upon them.
The owner of the instruments or securities referred to in this number only may assign or deliver property, use or enjoyment or the bare ownership of them through the mechanism of the transfer of credits.
2 ° the institutions receiving must be an account detailed by each person accepted into the system, and by each instrument or representative value of savings that the person has in the respective recipient institution. Account is to score at least the amount and date of any amount that the person deposited or invested, and the date and amount of each rotation or withdrawal made or received by the person, are they capital, profits, interests or others.
The assignment or delivery, voluntary or forced, of the property, and the transfer of voluntary use, enjoyment, or the bare ownership, instruments or securities referred to in the previous number, should be considered by the receiving institution as a retreat or the total investment money including their income or interest at the date of such transfer or delivery.
The forced transfer of enjoyment will force to consider only the withdrawals or spins of interest or income to which it gives rise. For the purposes of the preceding paragraph, in the case of the assignment or transfer of mutual fund investment should be given to the lower value between the expressed in the respective contract and the redemption value of the share of the Fund on the day of the transaction. Removal, meanwhile, shall be deemed in accordance with the rescue of the share value on the day of the transaction, without prejudice to apply the General rules of this Act with respect to the gain obtained in the alienation, the part that the value of the transaction exceeds the share redemption value.
Fees from mutual funds, for these same effects, shall be governed by the following rules: to) will be considered for the value of primary emission in the case of the purchase by the first owner; (b) the subsequent transactions will be recorded according to the market value of the share in the formal secondary market on the day of the transaction, in accordance with the rules provided by the Superintendency of securities and insurance to determine the adjusted stock market presence of investment funds quotas; (c) if the previous rule could not apply, shall be considered the carrying amount of the fee in accordance with the last State to be informed to the Superintendency of securities and insurance, re-designed according to the variation of the index of prices to the consumer between the last day of the month preceding the presentation of the State and the last day of the month prior to the transaction; ((((d) However, for purposes of accounting for deposit or investment is considered the transaction value of the respective if this is less than that resulting from the rules of the previous letters, and e) on the removal or money, the General rules of this law shall apply, respect of the profit made on the disposal of shares, in the part that the disposal price exceeds the resulting in the letters b) and (c)).
To December 31, the receiving institution will prepare a summary with the movement of each taxpayer accounts during the year. This summary with the appropriate balance must be sent within the two months following the end of the year to the address that informs the recipient institution. In this summary the balance of net savings of the person must include the recipient institution. To calculate this balance of net savings, investment and each turn, each deposit or withdrawal made during the year in the accounts must be addressed proportionally by the number of months remaining until the end of the year calendar, including the month that it carried out. This ratio shall be calculated in relation to a period of twelve months. The amount that results from subtracting total spins or withdrawals of the year of the total of deposits or investments, both thus calculated, shall be the balance of net savings. For the purposes of this subsection investments, deposits or withdrawals and turns must be reset according to the variation of the price index the consumer between the last day of the month preceding that in which made and the last day of the month prior to the end of the year. Deposits and savings in foreign currency instruments twists will be updated according to the provisions of article 41, number 4 °, of the law. The recipient institution must send the information of the summaries referred to in this subsection to the internal revenue service, in the opportunity and form to this point.
Proportional quantities of each deposit or money which, as indicated, should not be included in the calculation of the balance of net savings of the year, must be added and the resulting balance will have to crawl to the account of the year following and joining deposits or turns of the same. The balance of total drag of deposits and money should also include in the summary referred to in the preceding paragraph. For inclusion in the year that this amount must drag, it will reset according to the variation of the price index the consumer between the last day of the month prior to the closing of the previous year and the last day of the month prior to the end of the year concerned.
The institutions receiving information relating to the movement and the statements concerning this issue must be available to the internal revenue service.
3° the sum of net savings of all instruments or securities balances will be net savings of the year of the person.
4 ° if it the figure determined according to the previous number was positive, this will be multiplied by the average rate of tax from the person before the sales credits conferred by the law. The resulting quantity shall constitute a credit attributable to tax global tax or supplementary single second category, as appropriate. If the credit exceeds the tax year complementary Global, the excess will be returned to the taxpayer in accordance with article 97 of this law.
The number of net savings of the year to be considered in the calculation of the mentioned credit, must not exceed the smaller amount between 30% of the taxable income of the person or 65 annual tax units. The remnants of net savings not used, if any, must be added by the person to net savings of the following year, reset in the same way indicated in the penultimate paragraph of number 2 previous °.
5 ° If the number of net savings of the year was negative, this, in the part exceeding the equivalent of ten annual tax units according to their value at December 31 of the respective year, multiplied by the rate that results from dividing the cumulative total of credits calculated according to the number 4 ° used by the taxpayer since it has played host to the mechanism of this letter the total accumulated balances of net savings in the years that have been positive in the same period. The resulting amount shall be a debit to be considered complementary global tax or only of second category of taxpayer tax, as applicable, by applying the rules of article 72. For the calculation of the indicated rate credits will reset according to the variation of the price index the consumer between the last day of the month prior to the end of the year that had been imputed and the last day of the month prior to the end of the year in which corresponds to calculate this rate. Positive net savings balances will be added properly reset according to the variation of the mentioned index, between the last day of the month prior to the end of the year that have been determined and the last day of the month prior to the closing of the exercise that you must calculate the tax rate that is this number.
The undeclared tax debit will have for all legal purposes the nature of tax subject to withholding, and may turn it without any other formality prior the internal revenue service.
taxpayers who fail to comply with the Declaration of the tax debit may not enjoy tax benefits set out in this letter, while not pay that debit and their surcharges.
6° the people who use the mechanism of that trafficking in this letter must submit annual statements of income tax for the years in which use the credits listed in the 4th number or by those who must apply debits concerning the number 5 ° and, where appropriate, for the year or years in which, by application of the preceding rules must drag the surplus of deposits or withdrawals with the exception of persons whose negative net savings figure of the year does not exceed ten annual tax units referred to in number 5 °.
7 ° to the death of the titular person of savings instruments to the mechanism described in this letter, shall be withdrawn the total amounts accumulated in these instruments. On such sums be applied as a single tax of this Act resulting from the rules of number 5 °. The part that corresponds to the indicated tax shall be exempt from inheritance tax established by law N ° 16.271.
The tax mentioned in the preceding paragraph shall be determined by the judge that it should grant the actual possession of the inheritance, on the same occasion that inheritance and report of the internal revenue service tax. Certain tax will reset according to the variation of the index of prices to the consumer between the last day of the month preceding the death of the holder of savings instruments and the last day of the month prior to the determination by the judge. The tribute will be retained and paid by the recipient institutions, which the same judge instructed in this regard, notifying them personally or by order. The tax must be heard in tax coffers within twelve days of the month following that in which the recipient institutions are notified. The tax established in this issue will have preference to be paid on the funds accumulated in the instruments referred to in number 1 °, with respect to all other debts or creditor of the deceased.
If between instruments or heritage values with the mechanism of this letter had shares of mutual funds or investment funds and, in accordance with the decision of the judge, the whole or part of the tax should be paid from these funds, the judge may order the rescue or sale of part of such fees up to the amount required to settle payment of the re-designed tribute. The sale shall be made in the form provided for in article 484 of the code of Civil procedure.
8 ° if as a result of the alienation or forced liquidation, or a transaction or compromise, an instrument of saving of those referred to in this letter is transferred or settled, the receiving institution will retain and pay a tax of 15% of the amount invested, including their income or interest in tax coffers. This check will be made on behalf of the person that I made the investment, who may regard it as a voluntary payment of those referred to in article 88 of this law. Payment of this retention must be made within twelve days of the month following that in which the recipient institution has been notified of the transfer or liquidation of the instrument. The same rule applies in the case of the transfer or forced surrender of use or enjoyment of a savings instrument, but in this case, retention will apply only on the interest or income that is paid as a consequence of such assignment or delivery.
9° turns or withdrawals of funds invested in instruments or securities with the benefits of this letter, is corresponding to capital, interest, utilities or other, only applies to the tax regime established in this letter.
10° taxpayers who choose to invest in instruments of savings or investment in accordance with the rules of this letter, may not be eligible to benefit from the letter A for the same instruments.
11° the provisions in point 3 ° of article 17 of this law shall not apply with respect to the compensation or withdrawals of life insurance, in the part that corresponds to savings accounts benefiting from the mechanism established in this letter.
C special rules for contributors of the article 42, N ° 1-1 for the purposes of the application of the provisions in number 1 ° determination of the credit referred to in letter B.-This article, the persons taxed with the tax established in number 1 of article 43 of this law and the letter a. shall carry out an annual reassessment of the tax withheld during the year, deducting from the total of its taxable incomes successful quantities in accordance with number 1 of this letter a.. The reliquidar shall apply the scale of fees resulting in annual values according to the tax unit to 31 December, and credits and other elements of the tax calculation.
For the implementation of the previous rules, taxable income is reset in accordance with provisions in the penultimate paragraph of article 54, and the taxes withheld according to article 75, both of this law.
2° in the case of the number 1 of the letter a., if taxes withheld would be superior to the result of the reassessment, the difference will be returned to the taxpayer Treasury service in accordance with the rules of article 97 of this law.
3 ° in the case of certain credit standards of the letter B- with number 1 of this letter, will be also returned to the taxpayer by the Treasury service in accordance with article 97 of this law. With respect to the debit calculated in the way established in number 5 of the letter B-, it must be declared and paid by the taxpayer in the month of April of each year, by the negative savings amounts determined in the previous year. "."
((((k) Introducense in article 59 the following modifications: 1) in subsection first, replace the figure "40%" with "35%", and suprimense the words "technical" and "technical", and 2) in the second paragraph of number 2), add, after the word "provided", the expression "in Chile or".
(1) add the number 3 ° of article 69, after the expression "article 17", the following phrase: "and in the first paragraph of the letter A of article 41 A".
(m) added to article 70 of the law of tax income, following final paragraph: "taxpayers who are not forced to carry full accounting, may prove the origin of such funds by all means of proof which the law.".
(n) in the final paragraph of number 4, article 74, replace the figure "10%" by "15%".
((((((n) Introducense article 84 the following modifications: 1) replacements the digits "2%" and "% 1" letter c), "0.2%" letter e), and "0.2%" of the letter f), for the figures "3%" and "1.5%", "0.3%" and "0.3%", respectively, and 2) added in the final paragraph, after the word "Title", the following phrases: "and the incomes from foreign source referred to in letters A and B of article 41 A".