Friday, 8 May 2015

Chile’s new rules on taxation of foreign passive income

One of the changes introduced by Chile’s 2014 tax reform is the adoption of certain standards proposed by the OECD base erosion and profit shifting (BEPS) project aimed at combating international tax evasion. To this end, a controlled foreign company (CFC) regime has been introduced to regulate passive income earned by Chilean companies abroad. The regime aims to prevent the deferral of tax on foreign-source income by requiring Chilean resident taxpayers to include in their current taxable income certain types of passive income earned by nonresident foreign entities that are deemed to be CFCs.
Although the CFC regime will come into effect on 1 January 2016, certain reporting requirements on investments abroad must be fulfilled by 30 June 2015.
Source & more info: Deloitte