Income Tax on Foreign Income

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eeuunikkeiexpat
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Re: Income Tax on Foreign Income

Post by eeuunikkeiexpat » Sun Jan 11, 2015 11:42 pm

Gloria wrote:Exactly!!! how hard was that to understand!! You don't have businesses or employees or work for no one else so what do you have to declare???? NIENTE!
No Gloria, Chile tax law states a Chile resident must declare their overseas earnings but new residents have a three-year tax holiday on that.

And don't forget there is a two-way tax information sharing agreement between Chile-USA. We know the USA will ask Chile but the question is will Chile ask the US?
There are two ways to be fooled.

One is to believe what isn't true;

the other is to refuse to believe what is true.

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eeuunikkeiexpat
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Re: Income Tax on Foreign Income

Post by eeuunikkeiexpat » Mon Jan 12, 2015 12:15 am

FACTA is not the same as the Tax Information Sharing Agreement.

I became a temporary and permanent resident via my bank statements and ATM transactions. The question in every step is how do you support yourself? Obviously some sort of ingresos is coming in to support my lifestyle in Chile. Question may very well come up why are you not complying with Chile tax law?

Guess we need to determine what constitutes foreign renta and if saying I have nothing to declare is an adequate explication. As I pointed out above, every category except the oddball student and religious applications require Chile tax documentation. Yes, the pensioner doesn't but foreign pensions aren't taxed. See what I'm talking about?
There are two ways to be fooled.

One is to believe what isn't true;

the other is to refuse to believe what is true.

- Søren Kierkegaard

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eeuunikkeiexpat
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Re: Income Tax on Foreign Income

Post by eeuunikkeiexpat » Mon Jan 12, 2015 1:17 pm

Need to keep multiple options open in that hypothetical situation:

Spouse may not be working in three years.
And who knows if they are looking for consistency throughout the process (know a few who had a rougher ride when changing types of visa between temporary and permanent so could hold true for citizenship)?

This is Chile, keep it simple so that an 8th grader can understand, cross every t and dot every i, keep your options open. For the hypothetical situation, yes the houseperson path is an option but having a second possible one won't hurt. Of course, there is a slight possible chance the regs could change in three to five years.
There are two ways to be fooled.

One is to believe what isn't true;

the other is to refuse to believe what is true.

- Søren Kierkegaard

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eeuunikkeiexpat
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Re: Income Tax on Foreign Income

Post by eeuunikkeiexpat » Mon Jan 12, 2015 1:45 pm

Gloria wrote:At this point you guessed it right.......I SURRENDER OR GTFU!!
Urban Dictionary

GTFU
GROW THE F.CK UP

Used when adults are acting like kids
So I sense you are saying I'm dumb?

How many others out there think the issues I raised were stupid or pointless?
There are two ways to be fooled.

One is to believe what isn't true;

the other is to refuse to believe what is true.

- Søren Kierkegaard

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Magnyz
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Re: Income Tax on Foreign Income

Post by Magnyz » Tue Jan 13, 2015 3:15 pm

That's a very unfair remark Gloria. I for one symphatize with the questions because you had better do this stuff correctly now in order not to jeopardize any future applications (such as for a citizenship for example). Also, isn't it obvious why the word hypothetical is used here? Keep on digging eeuu...

Britkid
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Re: Income Tax on Foreign Income

Post by Britkid » Tue Jan 13, 2015 5:09 pm

I nominate that last post for a special award for irony.

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Magnyz
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Re: Income Tax on Foreign Income

Post by Magnyz » Tue Jan 13, 2015 6:12 pm

It's said that silence is golden. We are most grateful for your contribution in the matter.
Likewise. :D

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Re: Income Tax on Foreign Income

Post by HybridAmbassador » Tue Jan 13, 2015 6:14 pm

Gloria-san is exemplary in executing as accounted.
A very good technique of indicating an intention or attitude opposite to that which is actually or ostensibly stated.
Will, without a doubt be enlisting with her school if needing to keep on polishing my language education further!
I learn much every day reading the allchile English commanding forumite's clever minds!
HybridAmbassador. Toyota Hybrid system for helping climate change.

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eeuunikkeiexpat
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Re: Income Tax on Foreign Income

Post by eeuunikkeiexpat » Tue Jan 13, 2015 7:31 pm

I will be inclined not share what I do find after this forum battle.
There are two ways to be fooled.

One is to believe what isn't true;

the other is to refuse to believe what is true.

- Søren Kierkegaard

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Magnyz
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Re: Income Tax on Foreign Income

Post by Magnyz » Tue Jan 13, 2015 9:23 pm

I don't blame you...

Britkid
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Re: Income Tax on Foreign Income

Post by Britkid » Fri Aug 19, 2016 10:32 pm

So, my three years of not having to pay tax on foreign sourced income are running out. I checked the form online and it says the same thing as before, nothing has changed:

"el extranjero que constituya domicilio o residencia en el país, durante los tres primeros años contados desde su ingreso a Chile sólo estará afecto a los impuestos que gravan las rentas obtenidas de fuentes chilenas. Este plazo podrá ser prorrogado por el Director Regional en casos calificados."

I'll have go at an amateur translation here: "the foreigner that has residence in the country, during the first three years counted from his arrival in Chile only has to pay taxes for income from Chilean sources. This period can be extended by the Regional Director in qualified cases."

Comments: 1: not completely sure if "arrival" (at the airport) is the right translation of "ingreso" and hence the start point of the 3-year period. "Ingreso" also I believe carries with it a sense of "entering the system" so it could also refer to the moment of becoming a resident (or applying for such), as suggested by admin in the past.
2: Is "qualified" the right translation of "califacados" and what does that mean, is it implying that it is only for real special cases? Or it just a routine tramite? Who knows? Not me, anyway.

Britkid
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Re: Income Tax on Foreign Income

Post by Britkid » Fri Aug 19, 2016 10:50 pm

So, I've been to the SII office in Talagante, and explained the situation. They say this is not a regional office, and directed me to Fernando Riesco 33, Maipu. Dpto en Fiscalzacion. I didn't fancy a wasted trip, so first I called 23951000 which I thought was the number for Maipu but I must have been mistaken because I end up speaking to someone in Santiago. They then told me that actually I should go not to Maipu, but to Romero 3226 which is more central in Santiago. Also, no appointment in advance with this mysterious regional director, might have to go a person just to get the appointment or find out what to do.

Well, I've been told two different things about where to go, so someone must be wrong. Anyway, I think I'll go Santiago centre. At least there is other stuff I can done round there so not a completely wasted trip.

Now then...has anyone ever applied for this extension yet and got any story to tell? It's been a year and a half since this was last brought up, so thought I'd try. There must be people with more than three years gaining foreign sourced income, so what's everyone's story? :) Feel free to use private message if you prefer.

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