Taxation of income for annual visits to Chile

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Re: Taxation of income for annual visits to Chile

Post by admin » Thu Nov 23, 2017 7:51 am

The clock starts for residency and paying taxes when you decide to make chile your tax home. Has nothing to do with immigration status.

It is a fuzzy definition, that for some starts the day they get off the airplane. Others it might not start for years or ever, even if they spend a lot of time physicaly in chile.

That does not apply to citzens, because they are subject at all times to chilean taxes on their income.

For those still struggling with the concept, it is why chile has invested so much time into a tax treaty with the u.s. over double taxation (that the u.s. never passed through congres). It was not just to reduce taxes on americans working in chile. What would be the point, if chileans outside chile were not subject to chilean income tax? :alien:


Foreign pensions, including u.s. social security are never taxed.

The key to the exemption on inheritance tax on foreign inheritance, is it is inheritance that was generated from income source that was not earned in chile. Otherwise anyone with two pesos in chile, would simply move their money off-shore (which they do anyway).
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Re: Taxation of income for annual visits to Chile

Post by admin » Thu Nov 23, 2017 8:04 am

By the way, the whole inheritance thing is way more complicated than simply where the income was generated.
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ghibli
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Re: Taxation of income for annual visits to Chile

Post by ghibli » Thu Nov 23, 2017 1:57 pm

Greetings all. I find I am still confused about the chile tax obligation. I have decided after reading through the somewhat imprecise definition of three years that I have reached the mark and would be theoretically obliged for chile tax for calendar 2017. BUT, what exactly is taxable. I live on income and savings which are totally derived from sources outside of chile with no chile connexion what so ever. Is that taxable? How is income defined? I can't find any forms at the SII website, so I have no idea.... comments will be greatly appreciated.

lost gringo
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Re: Taxation of income for annual visits to Chile

Post by lost gringo » Thu Nov 23, 2017 2:28 pm

ghibli wrote:
Thu Nov 23, 2017 1:57 pm
Greetings all. I find I am still confused about the chile tax obligation. I have decided after reading through the somewhat imprecise definition of three years that I have reached the mark and would be theoretically obliged for chile tax for calendar 2017. BUT, what exactly is taxable. I live on income and savings which are totally derived from sources outside of chile with no chile connexion what so ever. Is that taxable? How is income defined? I can't find any forms at the SII website, so I have no idea.... comments will be greatly appreciated.
I'm in the same situation and I can't find any answers either so I'm going to do nothing until "they" say or do something.
Sometimes I wonder whether the world is being run by smart people who are putting us on or by imbeciles who really mean it.
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frozen-north
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Re: Taxation of income for annual visits to Chile

Post by frozen-north » Thu Nov 23, 2017 2:28 pm

This could be a start:

CONVENIOS TRIBUTARIOS INTERNACIONALES/ INTERNATIONAL TAX CONVENTIONS

En esta página se pueden consultar los convenios para evitar la doble imposición suscritos por Chile. Se indica además los datos de contacto de las autoridades competentes para efectos de los Convenios señalados en el punto I.

On this page you can find the Conventions for the avoidance of double taxation signed by Chile, together with the contact details for the competent authority for purposes of the Conventions referred to in section I.

http://www.sii.cl/pagina/jurisprudencia/convenios.htm

jehturner
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Re: Taxation of income for annual visits to Chile

Post by jehturner » Thu Nov 23, 2017 11:33 pm

    admin wrote:
    Wed Nov 22, 2017 7:40 am
    She is chilean. She is liable for income taxes to chile regardless if she is here or not.
    Whoa!! What?!? :shock: I thought there were only about 3 countries in the World that obnoxiously do this -- the US and a couple of African republics -- rather than applying the common-sense rule of being taxed on Worldwide income where you live, like everywhere else (one reason I would rather have kids here than in the US).

    For what it's worth, here's what Wikipedia has to say on the matter:
    The United States is one of two countries in the world that taxes its non-resident citizens on worldwide income, in the same manner and rates as residents; the other is Eritrea. The U.S. Supreme Court upheld the constitutionality of imposition of such a tax in the case of Cook v. Tait.
    I hope what you meant is something like "liable for income taxes to chile on income from within the country, regardless..." (wondering what we have let our children in for now, argh)?

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