Loan From Abroad & Taxes - Finance and Banking - Mondaq Chile - Mondaq Business Briefing - Books and Journals - VLEX 592090442

Loan From Abroad & Taxes

Author:Brokering Abogados
Profession:Brokering Abogados
 
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When a foreign company wants to grant a loan to her foreign branch in Chile there are a couple of things she has to have in mind.

First, a loan agreement has to be informed to the Chilean Central Bank when the money arrives. It is important to inform the loan to avoid to be seen as a covered distribution of profit when they start to service the loan.

Second, loans are subject to the "impuesto de timbres y estampillas" (stamp tax). In general, the stamp tax is a tax levied upon credit transactions contained in documents . Usually, the stamp tax is levied when the loan agreement is signed. As an exemption, credits coming from abroad do not need to be contained in a document to be levied by such tax. In these cases, where no document states the credits agreements that are the source of the money coming from abroad, the tax is levied when the loan enters the country or is registered in the account books in Chile .In case the loan agreement refers to a credit being awarded abroad, then the stamp tax is levied when the money arrives in Chile. The amount of the tax is o,6% of the credit. So, this tax is levied only once...

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