This article explains the tax laws in Chile, you have to know about taxation for a LLC (SRL) which is the most common company type in Chile.
Chile has a tax on foreign earned income earned abroad separately then it it was derived locally. Theestablished rate for income earned abroad, from our research, and these things do change, is 0%. CL does not have major incentives to bring in income earned abroad earned abroad. Taxes are quite low in Chile because the is 23%. This ranks Chile as 94th when compared to corporate tax rate worldwide. . .
The valued added tax rate in CL is 19.00%, that ranks Chile as 94th overall in terms of value added tax rate worldwide. In terms of other taxation, an employer will contribute 7.00% to the equivalent of a social security fund and an employee will contribute 7.00%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 125hours. Contributing to this is the number of yearly labor tax payments, which is 1 in CL.
Thin cap laws are in play. This refers to any sort of laws on a business and the debt-to-asset ratios. Dividends are distributions of a company profit, voted on by the board, to shareholders.Dividends can be issued as stock, cash, or property. The capital gains rate in CLis 0%. A capital gains tax is levied on the profits that a corporation or natural person realizes when they sell sells a capital asset for a price that is higher than the purchase price.
The interest witholding rate is estimated at 0This means that the taxman expects relevant legal entities to automatically withhold 0 of money remitted abroad for interest payments. The dividends witholding rate is 0This should be interpreted usually that the relevant tax authorities expects LLC (SRL)'s to pay tax on at least 0 of payments abroad on dividend payments. The royalties witholding rate 0 This means that the tax authorities expects legal entities to pay tax on at least 0 of payments abroad on royalty payments.
There is no known tax on wealth in Chile. There are inheritance taxes in Chile placed on an estate. We are aware of commonly used credits for innovation spend that include tax relief here.
The above is not tax or legal advice for your individual facts and circumstance. Incorporations.io can to refer you to an expert in Chile who will consult with you. Want to work together? Click the free consultation button above.
It takes approximately 42 hours to file and prepare documents for a Chile Civil Law.
The corporate tax is approximately 22.5% which is 94 in the world.
Owners of a company in Chile are allowed to carry back a loss and may be allowed to carry forward a loss for 100 years.
The vat rate in Chile is 19% which ranks 128 in the world.
Thin capitalization rules are not in effect.
A corporate director is permitted, meaning this country is a good option if you are setting up a structure where you want to protect director liability.
The directors are disclosed in the public registry of Chile, Diario Oficial. Shareholders are disclosed in the Diario Oficial.
Typically companies take 9 weeks to setup and there are 1 director(s) required and 1 shareholder(s) required at the time of incorporation.
Overall we think Chile is a good option and have given it a score of 81 as an IO score, using the Incorporations.IO proprietary formula.
We can help you form a company in Chile. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Chile, which is required by law.
We can help you with your incorporations needs for an initial payment of just $1000.
Easy Step by Step Process:
The standard process typically takes between two (2) to three (3) weeks depending on when we receive all the required information from you. Once we receive your information, we will email you a complete set of documents for your review within 3 working days upon confirmation of payment. After executing the documents, you will need to mail them to us and we will formally submit your application for filing with the Registry. The Registry will then take about 3-8 working days to process the incorporation and produce certificates necessary for opening your bank account.
Applying for Your Bank Accounts:
Incorporations.IO maintains close working relationship within our extensive network of partner banks to help you apply for and receive banking services that are most appropriate to your specific situation. From the time of verification of incorporation it can take (1) one week to (2) two weeks to apply for and receive a bank account. We work primarily with banks that allow for remotely opened accounts to ensure you are ready to do business as soon as possible.
Applying for Payment Processing:
We include introductions to payment processors or merchant accounts with all of our incorporation services. Whether you just need standard credit card processing or specialized services for high risk processing, we have partners that can assist you and are happy to help you with introductions that can empower your business.
Start Online or via Phone:
We can get started for you whenever you are ready via a US$1000 initial payment via credit card. I get notified whenever a payment is made here and would send out the welcome letter and initial forms we would need within 12 hours. If you prefer, we can also process via a phone or Skype call.