Amendments to income tax of non-residents — Orbitax Tax News & Alerts
Law 20,154, published in the Official Gazette of 9 January 2007, introduced the following changes to the taxation of some items of income of non-residents, which are effective from 1 January 2007:
| - | the 30% tax on royalties and any other consideration paid for the use of trademarks, patents, and for know-how and similar supplies, is extended to include not only the use but also the right to use (goce) and the exploitation; | |
| - | the possibility to tax royalties and assistance fees that are unproductive or non-essential at increased rates of up to 80% is eliminated; | |
| - | the rate is reduced from 30% to 15% on payments for the use, right to use (goce) or exploitation of discovery patents, utility models, industrial drawings and designs, sketches (trazados) or topographies of integrated circuits, and new vegetal varieties. The rate is reduced from 30% or 20% to 15% on payments for the use, right to use (goce) or exploitation of computer programmes in order to carry out or obtain a process or result contained in cassettes, diskettes, discs, magnetic tapes or other material supports or media. However, the rate will be 30% if the payee is established or resident in a country included in the list of tax havens or holds or participates in 10% or more of capital or profits of the payer, or is under a common partner or shareholder that, directly or indirectly, holds or participates in 10% or more of the capital or profits of the payer or payee; and | |
| - | the rate is reduced from 20% to 15% on payments to individuals or legal entities for engineering or technical work and for professional or technical services supplied through an advice, report or draft (plano), whether the supply is made in Chile or abroad. However, the rate will be 20% if the payee is established or resident in a country included in the list of tax havens or holds or participates in 10% or more of capital or profits of the payer, or is under a common partner or shareholder that, directly or indirectly, holds or participates in 10% or more of the capital or profits of the payer or payee. |