What taxes will I have to pay monthly and annually?
Monthly payments are only made if the company has sales and/or withholdings for professional fee receipts.
If a company is subject to VAT on sales, it must pay 19% of sales after deducting the tax credit from purchases in the period and accumulated tax credit.
Additionally, when there are sales (whether VAT-subject or exempt), a Provisional Monthly Payment (PPM) must be paid, ranging from 0.25% to 1% of net sales. For VAT-exempt companies (generally services, consulting, etc.), only the PPM is paid.
Annually, tax payment depends on the tax regime the company is under. One regime does not tax profits, and partners or shareholders pay personal tax (Pro Pyme Transparent Regime).
Which countries does Chile have double taxation treaties with?
Chile has treaties in force with more than 30 countries, including:
• Americas: Argentina, Brazil, Colombia, Ecuador, Mexico, Paraguay, Peru, and United States (for information exchange only).
• Europe: Spain, France, Germany, Italy, Portugal, United Kingdom, Switzerland, Belgium, Austria, Netherlands, Ireland, Poland, Czech Republic, Croatia, Denmark, Norway, Sweden, and Russia.
• Asia and Oceania: China, Japan, South Korea, Malaysia, Thailand, Australia, and New Zealand.
These treaties prevent you from paying taxes twice on the same income. We advise you on how to take advantage of the treaty applicable to your country.