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New Tax Regimes

Author:Ms Jessica Power, Manuel Alcalde and Manuel José Garcés
Profession:Carey
 
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TAXPAYER

REGIME A

REGIME B

METHOD FOR EXERCISING THE OPTION

Public Corporations, Closed Corporations and "Sociedad en Comandita por Acciones".

N/A

Mandatory regime.

N/A

Individual Companies and Individual Limited Liability Companies.

Applicable provided the owner of the company is: (i)an individual domiciled or resident in Chile; and/or (ii)an individual or entity domiciled or resident abroad (together as "Final Taxpayers).

In absence of an election, this regime is applicable by default as long as the owner is an individual domiciled or resident in Chile. Otherwise, Regime B is applicable by default.

Applicable.

By submitting a written statement to the Chilean Tax Authority ("SII"); or online through the website of the SII.

Branches and Permanent Establishments.

Applicable.

Applicable.

In absence of an election, this regime is applicable by default.

Co-ownership.

Applicable provided all of the co-owners are Final Taxpayers.

In absence of an election, this regime is applicable by default as long as all of the co-owners are individuals domiciled or resident in Chile. Otherwise, Regime B is applicable by default.

Applicable.

If any of the co-owners is not a Final Taxpayer, Regime B is mandatory.

By submitting a written statement to the SII signed by all of the co-owners; or online through the website of the SII (in which case the written statement signed by all of the co-owners should be available in case that statement is requested by the SII).

Limited Liability Companies (eg. "Sociedad de Responsabilidad Limitada").

Applicable provided all the partners are Final Taxpayers.

In absence of an election, this regime is applicable by default as long as all the partners are individuals domiciled or resident in Chile. Otherwise, Regime B is applicable by default.

Applicable.

If any of the partners is not a Final Taxpayer, Regime B is mandatory.

By submitting a written statement to the SII signed by the legal representative of the company with a public deed granted with the unanimous approval of the partners/shareholders attached therein; or online through the website of the SII (in which case the public deed granted by the partners/shareholders should be available in case that deed is requested by the SII).

Stock Companies ("Sociedad por Acciones").

Applicable provided all the shareholders are Final Taxpayers.

The by-laws cannot include a provision that allows the transfer of the shares to taxpayers other than Final Taxpayers, without the unanimous...

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