Page 2 of 3

Re: TAXES

Posted: Thu Aug 23, 2018 7:27 pm
by admin
Here, if you don't like any of those answers, or they were confusing, just wait.

Time for the reform of the tax reform. Here is all 300 gory pages introduced to congress, and prepare for more to be added and modified.
https://www.df.cl/noticias/site/artic/2 ... utaria.pdf

Funny story about the tax reform.

We had several cases and clients that were impacted by the tax reform. All started long before the tax reform was introduced.

We go to a meeting with two tax experts. One of the accountants has worked for us for years. We were meeting at her office.

This was smack in the middle of the implementation of the tax reform that bachelet passed. so, everyone was scrambling trying to figure out how it would effect the particular cases we were dealing with at the moment, and just about everything else. So, we asked both the accountants what they thought was going to happen, and we needed to know what to tell the rest of our clients.

The outside accountant, shook his head, looked at the floor, 'its not good, it is really not good'.

The other accountant, turns and waves at the book case behind her with about 30 books, about inch thick each, on a shelf and says, "this is the tax reform. I am still reading the intro, to the first book".

She said, "they are going to have to pass a tax reform long before I get to the last book, because what they passed is simply not workable".

Bachelet, and friends, probably cost the country billions, possibly a trillion, dollars with that half baked socialist pipe dream of a tax reform they rammed through congress. It will be a decade before they work the bugs out of it. Hell, the IRS is not even sure what is in that tax reform or how to implement it.

Re: TAXES

Posted: Thu Aug 23, 2018 8:26 pm
by paladin
admin, I have the same opinion, but at least with Pinera’s new plan, I think it’s workable and as is a little more understandable. What is always the problem with tax laws is they are not written by accountants/tax specialists but by politicians, who albeit may have an MBA from Harvard, have not had the specialist training necessary to handle tax laws.
An example of unnecessary confusion , is as you have seen; the question often asked, particularly by foreigners here is “ are foreign pensions taxable?” The answer is that they aren’t. But that’s only because the tax law here looks upon pensions as” not income” hence they dont need to be declared. My logic is that a foreign pension is “income” , as if it isn’t, what is it ? Hence it would make things far clearer and easily understood, if SII were to just say that they are “ income not subject to tax”.
This is just an example of why tax accountants have so much difficulty in making sense of new tax laws, regardless of which government makes them.

Re: TAXES

Posted: Thu Aug 23, 2018 8:30 pm
by paladin
to “ thisisreallycomplicated” , thinking on understanding taxes here, in case you arent already aware, we have “ negative interest” here, which for a change, I think is very logical, and I havent come across it in other countries.

Re: TAXES

Posted: Fri Aug 24, 2018 9:25 pm
by thisisreallycomplicated
admin wrote:
Thu Aug 23, 2018 7:27 pm
Here, if you don't like any of those answers, or they were confusing, just wait.

Time for the reform of the tax reform. Here is all 300 gory pages introduced to congress, and prepare for more to be added and modified.
https://www.df.cl/noticias/site/artic/2 ... utaria.pdf

Funny story about the tax reform.

We had several cases and clients that were impacted by the tax reform. All started long before the tax reform was introduced.

We go to a meeting with two tax experts. One of the accountants has worked for us for years. We were meeting at her office.

This was smack in the middle of the implementation of the tax reform that bachelet passed. so, everyone was scrambling trying to figure out how it would effect the particular cases we were dealing with at the moment, and just about everything else. So, we asked both the accountants what they thought was going to happen, and we needed to know what to tell the rest of our clients.

The outside accountant, shook his head, looked at the floor, 'its not good, it is really not good'.

The other accountant, turns and waves at the book case behind her with about 30 books, about inch thick each, on a shelf and says, "this is the tax reform. I am still reading the intro, to the first book".

She said, "they are going to have to pass a tax reform long before I get to the last book, because what they passed is simply not workable".

Bachelet, and friends, probably cost the country billions, possibly a trillion, dollars with that half baked socialist pipe dream of a tax reform they rammed through congress. It will be a decade before they work the bugs out of it. Hell, the IRS is not even sure what is in that tax reform or how to implement it.
It sounds a lot like obamacare. All I know is I had to pay a lot more last year, than the year before. And I don't know if I got anything for it, that I really care about. My goal is to understand the tax laws that apply to me, at least well enough that I'm no more confused than my accountant:)

Re: TAXES

Posted: Fri Aug 24, 2018 9:34 pm
by thisisreallycomplicated
paladin wrote:
Thu Aug 23, 2018 8:30 pm
to “ thisisreallycomplicated” , thinking on understanding taxes here, in case you arent already aware, we have “ negative interest” here, which for a change, I think is very logical, and I havent come across it in other countries.
I tried looking that up, but I keep finding stuff about negative interest rates instead. And I don't think that's what you mean. Do you have a link to something that talks about it?

Re: TAXES

Posted: Fri Nov 16, 2018 11:26 am
by shortiemama
I filed my 2018 form 22 (for 2017 income) with SII in May of this year. I have received notice that there is a discrepancy. My only source of income is foreign pensions. As I recall, in previous years, there was a line on the Form 22 to exclude foreign-sourced pensions. I could not find that line on the 2018 form. Perhaps the form was revised along with the new tax laws? I have two questions: 1)if my only source of income is foreign pensions, do I have to file a Form 22? 2) now that I have filed an incorrect 2018 form, how do I correct it?

Thank you for any information that you can provide.

Re: TAXES

Posted: Fri Nov 16, 2018 1:10 pm
by admin
Are you a full permanent resident, and for how long?

Re: TAXES

Posted: Fri Nov 16, 2018 3:35 pm
by shortiemama
admin wrote:
Fri Nov 16, 2018 1:10 pm
Are you a full permanent resident, and for how long?
Yes, I am a full permanent resident and have been since 2012.

Re: TAXES

Posted: Fri Nov 16, 2018 9:08 pm
by paladin
from my recollection of the law, foreign pensions are not considered to be income, and hence should not be included on form 22. Sii says such pensions are not income, which is different from being non taxable income.

Re: TAXES

Posted: Sun Nov 18, 2018 8:23 am
by admin
yea, foreign pensions are never taxed in Chile.

You also are not taxed on other foreign income, for the first three years of "tax residency".

Re: TAXES

Posted: Sun Nov 18, 2018 1:44 pm
by shortiemama
Thank you, paladin and admin.

Re: TAXES

Posted: Tue Jan 08, 2019 1:05 pm
by Huelshoff
I have a question that is sort of related to this thread. I am retiring in about six months and moving to Chile. My Chilean wife already resides in Stgo, and has a regular bank account. Our marriage has not been registered in Chile yet, nor do I have a RUT or bank account in Chile. I want to start transferring money from my US savings account, all post-tax income, to her account in Chile. Later (in about a year), I will want to transfer both a monthly pension check and withdrawals from a separate pension account, all post-US tax. I was speaking with my wife's gringo accountant in Chile the other day, and he was concerned that if I start depositing money in her Chilean account the government will tax it. Does anyone here have any experience with a situation like this?