The IIS updates the list of countries considered as "low-tax"

The Internal Revenue Service (SII) has updated the list of countries considered "low taxes", according to the standards of the countries of the Organization for Economic Co-operation and Development (OECD).

In a resolution, the agency defined 147 nations as "special" tax regimes, including Cuba, Venezuela, Costa Rica, Puerto Rico, Haiti, and Palestine, among other nations. This implies that Bolivia and Panama leave the list, which was published provisionally in December of last year.

At the international level, the term "tax haven" has ceased to be used by the OECD, an organization applying the concept of "preferential regimes". "Preference will be given to jurisdictions whose effective tax rate on income from a foreign source is less than 50% of the rate of the first paragraph of Section 58 of the Income Tax Act. Income Tax (ITA).

Countries or States that have not concluded an agreement with Chile authorizing the exchange of information for tax purposes will also be

In addition, territories whose legislation does not provide rules for the tax administration to be part of this group may control transfer prices and do not fulfill the conditions to be considered compliant or "substantially compliant" with international standards on transparency and the exchange of tax information by the OECD, which have one or more preferential tax regimes that are not not in accordance with the standards of the OECD and that they im exclusively income generated, produced or whose source is in their own territory.

Effects in Practice

What consequences will a Chilean taxpayer have for declaring source income from one of the countries? from this list? According to the resolution of the Tax Examiner, published in December and which was completed yesterday, will be established "additional" information obligations and "larger penalties" if the investments (Article 14 letter E) No. 1 of the ITA)

This includes an additional 30% tax on payment or credit to persons where the creditor or the recipient of the royalties or remuneration is incorporated, domiciled or resident in one of the from the following countries: the territories already mentioned.

"It should be kept in mind that this service performs its tax compliance analysis and case selection processes based on methodologies and technical disciplines of general acceptance risk management. , which in terms of transactions or transactions held with jurisdictions or jurisdictions of no or low taxation receive a greater risk weighting and prioritization so the end of its treatment and remediation, which is also in line with the standards that have been developed at the national and international level "concludes the December text.