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Paying taxes for work done internationally

Posted: Thu Jan 03, 2019 2:13 pm
by cr0zzb0w
Hi..
I have been living here in Chile for the last 5 or so years, and have a stable contract job with contributions and everything else in order. Since recently, I have started to supplement my income by doing some off the hours work (I am a 3d artist).

For all the work I do within Chile, I issue boleta honararios and get paid accordingly.

My question is, how should I pay taxes for work I do for international clients. I have a gig lined up and wanna clear up how I should do this to stay on the right side of the law! :D I guess I cannot issue boletas as my clients are outside of chile and thus have no rut or any presence in chile..

I'll be eligible to apply for citizenship soon, so I wanna be legal in my finances, and also would like to have the taxes for my income properly paid so that I can someday hopefully get a credito hipotacario for a house..

pls advice!

Re: Paying taxes for work done internationally

Posted: Thu Jan 03, 2019 2:25 pm
by Jamers41
Ironically enough I am in a similar situation (permanent resident for years in Chile, eligible to apply for citizenship, have a main job locally, now have a side job earning income online outside of Chile).

Since my side job is paid in dollars and those dollars go to a US bank account (and never enter Chile one way or the other), I have been more concerned about Uncle Sam being in the loop and getting his "fair share" (if any) than the Chilean SII. I guess if I'm being too nonchalant about the local tax regime, someone here will say so.

Re: Paying taxes for work done internationally

Posted: Thu Jan 03, 2019 5:09 pm
by Space Cat
You just issue your boletas to a universal RUT for these purposes.

In "My SII":
  1. "Emitir boleta de honorarios electrónica", click "Por contribuyente" (as usual, I suppose).
  2. Select the second option "El contribuyente emisor será quien se encargue del pago provisional mensual correspondiente al 10%." because you'll be paying the 10% retention.
  3. Enter the universal RUT: 44.444.446-0 (note that it's specifically for boletas, facturas to foreign clients require another universal RUT).
  4. Enter the name and address of your client, including the country (I just use "EE.UU." for the US).
  5. Set the "Región" to "Metropolitana de Santiago" and "Comuna" to "Santiago".
  6. Enter the amount in CLP, I just use today's exchange rate even if I don't plan to convert the money from USD to CLP.
These are the instructions I got from an accountant who has experience with freelancers, and then I double-checked the RUT by calling to SII's hotline.

Re: Paying taxes for work done internationally

Posted: Thu Jan 03, 2019 6:17 pm
by cr0zzb0w
Space Cat wrote:
Thu Jan 03, 2019 5:09 pm
You just issue your boletas to a universal RUT for these purposes.

In "My SII":
  1. "Emitir boleta de honorarios electrónica", click "Por contribuyente" (as usual, I suppose).
  2. Select the second option "El contribuyente emisor será quien se encargue del pago provisional mensual correspondiente al 10%." because you'll be paying the 10% retention.
  3. Enter the universal RUT: 44.444.446-0 (note that it's specifically for boletas, facturas to foreign clients require another universal RUT).
  4. Enter the name and address of your client, including the country (I just use "EE.UU." for the US).
  5. Set the "Región" to "Metropolitana de Santiago" and "Comuna" to "Santiago".
  6. Enter the amount in CLP, I just use today's exchange rate even if I don't plan to convert the money from USD to CLP.
These are the instructions I got from an accountant who has experience with freelancers, and then I double-checked the RUT by calling to SII's hotline.
Done!!! thanks man! thats all i wanted :D

Re: Paying taxes for work done internationally

Posted: Thu Jan 03, 2019 10:05 pm
by at46
Jamers41 wrote:
Thu Jan 03, 2019 2:25 pm
Ironically enough I am in a similar situation (permanent resident for years in Chile, eligible to apply for citizenship, have a main job locally, now have a side job earning income online outside of Chile).

Since my side job is paid in dollars and those dollars go to a US bank account (and never enter Chile one way or the other), I have been more concerned about Uncle Sam being in the loop and getting his "fair share" (if any) than the Chilean SII. I guess if I'm being too nonchalant about the local tax regime, someone here will say so.
I'm pretty sure SII, IRS and the Canadian counterpart can search each other's databases but probably do that only for some red flags. If you do apply for citizenship, that might raise one of those red flags.