Tax Question

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GAminer
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Tax Question

Post by GAminer » Mon Apr 06, 2020 12:55 pm

So I have lived in Chile for over three years now, and was under the impression that it was mandatory to declare my income from outside of Chile. In my particular case I have a few rental properties in the US that currently accounts for 100% of my income. Since I am a permanent resident and plan on applying for chilean citizenship in the future, I am trying to be a good boy and make sure that all my ducks are in a row as far as taxes are concerned. Now I find myself completely confused after speaking to representatives of the SII, once in person and the other over phone, and could sure use some clarification on this subject. They are telling me that Chile and the US have a convenio de doble tributacion, and that as long as I am paying taxes in the US that I do not have to in Chile. Is this true? Anyone in a similar situation that can explain what I need to do?

Thanks!

GAminer
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Re: Tax Question

Post by GAminer » Thu Apr 16, 2020 1:07 pm

Anybody?

thisisreallycomplicated
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Re: Tax Question

Post by thisisreallycomplicated » Thu Apr 16, 2020 4:25 pm

I don't know the answer, but did you try reading the convenio de doble tributacion? Even if you get professional advice, you should still read it for yourself if it's important to get it right. I learned that the hard way, more than once.
“Now it’s conspiracy – they’ve made that something that should not even be entertained for a minute, that powerful people might get together and have a plan. Doesn’t happen, you’re a kook, you’re a conspiracy buff!” – George Carlin

GAminer
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Re: Tax Question

Post by GAminer » Thu Apr 16, 2020 5:27 pm

thisisreallycomplicated wrote:
Thu Apr 16, 2020 4:25 pm
I don't know the answer, but did you try reading the convenio de doble tributacion? Even if you get professional advice, you should still read it for yourself if it's important to get it right. I learned that the hard way, more than once.
From my understanding Chile and the US no longer have a convenio de doble tributación.

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eeuunikkeiexpat
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Re: Tax Question

Post by eeuunikkeiexpat » Thu Apr 16, 2020 6:15 pm

I recall because it was never approved by the US Congress (Senate) but then, if you look at the details of the information sharing aspects it is quite disturbing.
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

thisisreallycomplicated
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Re: Tax Question

Post by thisisreallycomplicated » Thu Apr 16, 2020 9:46 pm

GAminer wrote:
Thu Apr 16, 2020 5:27 pm
thisisreallycomplicated wrote:
Thu Apr 16, 2020 4:25 pm
I don't know the answer, but did you try reading the convenio de doble tributacion? Even if you get professional advice, you should still read it for yourself if it's important to get it right. I learned that the hard way, more than once.
From my understanding Chile and the US no longer have a convenio de doble tributación.
That's what I thought too, but I didn't research it thoroughly. Maybe the SII people got it confused with the totalization agreement? Or maybe they still follow it for some reason? I'm just guessing.
“Now it’s conspiracy – they’ve made that something that should not even be entertained for a minute, that powerful people might get together and have a plan. Doesn’t happen, you’re a kook, you’re a conspiracy buff!” – George Carlin

thisisreallycomplicated
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Re: Tax Question

Post by thisisreallycomplicated » Thu Apr 16, 2020 9:53 pm

eeuunikkeiexpat wrote:
Thu Apr 16, 2020 6:15 pm
I recall because it was never approved by the US Congress (Senate) but then, if you look at the details of the information sharing aspects it is quite disturbing.
Was it approved by Chile? Maybe Chile doesn't want to double tax anyone, even if they technically could? Maybe it's just too much trouble, and not enough revenue? There might only be 1 guy in Chile that really understands it all, and he's on vacation :? I'm still trying to understand how(if) things work in this country.
“Now it’s conspiracy – they’ve made that something that should not even be entertained for a minute, that powerful people might get together and have a plan. Doesn’t happen, you’re a kook, you’re a conspiracy buff!” – George Carlin

GAminer
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Posts: 114
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Re: Tax Question

Post by GAminer » Thu Apr 16, 2020 10:15 pm

thisisreallycomplicated wrote:
Thu Apr 16, 2020 9:53 pm
eeuunikkeiexpat wrote:
Thu Apr 16, 2020 6:15 pm
I recall because it was never approved by the US Congress (Senate) but then, if you look at the details of the information sharing aspects it is quite disturbing.
Was it approved by Chile? Maybe Chile doesn't want to double tax anyone, even if they technically could? Maybe it's just too much trouble, and not enough revenue? There might only be 1 guy in Chile that really understands it all, and he's on vacation :? I'm still trying to understand how(if) things work in this country.
I am thinking now that I do not have to declare this year since my income was less than 8.000.000 pesos. I called the SII and asked if that considered both foreign and national sources and they said yes, so we will see what happens.

thisisreallycomplicated
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Re: Tax Question

Post by thisisreallycomplicated » Thu Apr 16, 2020 11:48 pm

GAminer wrote:
Thu Apr 16, 2020 10:15 pm
thisisreallycomplicated wrote:
Thu Apr 16, 2020 9:53 pm
eeuunikkeiexpat wrote:
Thu Apr 16, 2020 6:15 pm
I recall because it was never approved by the US Congress (Senate) but then, if you look at the details of the information sharing aspects it is quite disturbing.
Was it approved by Chile? Maybe Chile doesn't want to double tax anyone, even if they technically could? Maybe it's just too much trouble, and not enough revenue? There might only be 1 guy in Chile that really understands it all, and he's on vacation :? I'm still trying to understand how(if) things work in this country.
I am thinking now that I do not have to declare this year since my income was less than 8.000.000 pesos. I called the SII and asked if that considered both foreign and national sources and they said yes, so we will see what happens.
That sounds reasonable to me
“Now it’s conspiracy – they’ve made that something that should not even be entertained for a minute, that powerful people might get together and have a plan. Doesn’t happen, you’re a kook, you’re a conspiracy buff!” – George Carlin

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