Paying taxes for work done internationally

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cr0zzb0w
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Location: Sri Lankan living in Santiago

Paying taxes for work done internationally

Post by cr0zzb0w » Thu Jan 03, 2019 2:13 pm

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!

Jamers41
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Re: Paying taxes for work done internationally

Post by Jamers41 » 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.

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Space Cat
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Re: Paying taxes for work done internationally

Post by Space Cat » 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.

cr0zzb0w
Rank: Chile Forum Tourist
Posts: 22
Joined: Sun Oct 06, 2013 3:27 am
Location: Sri Lankan living in Santiago

Re: Paying taxes for work done internationally

Post by cr0zzb0w » Thu Jan 03, 2019 6:17 pm

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

at46
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Re: Paying taxes for work done internationally

Post by at46 » Thu Jan 03, 2019 10:05 pm

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.

questions
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Re: Paying taxes for work done internationally

Post by questions » Mon Aug 26, 2019 6:03 pm

Space Cat,
I would like more information on paying taxes for work done internationally.
Any recommendations for accountants with experience with freelancers that work internationally?
Thank you.

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Space Cat
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Location: Valdivia

Re: Paying taxes for work done internationally

Post by Space Cat » Mon Aug 26, 2019 10:25 pm

I think you are a bot or a lazy spammer. But you don't need an accountant to work as an individual: issue your boletas in the end of each month according to my instructions above, submit the form F29 ("Impuestos Mensuales" in Mi SII), pay 10% retention (the same section) and you are done.

questions
Posts: 2
Joined: Mon Aug 26, 2019 5:58 pm

Re: Paying taxes for work done internationally

Post by questions » Tue Aug 27, 2019 1:00 pm

I am not a bot and definitely not a lazy spammer.
In any case, thank you for the info.

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