Taxation Of Nonresident Entities

In general, a nonresident company is liable for Chilean tax only on its Chilean-source income, which means income derived from assets located in Chile or services provided there. As an exception, however, a nonresident company is liable for Chilean withholding tax on income from services rendered outside Chile to Chilean residents. Tax on a nonresident company's Chilean-source income is normally collected in the form of a final withholding tax. First category tax, however, is levied by assessment on branches and other permanent establishments in Chile of nonresident companies.

The information in this article was correct as of 9 July 1996.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

For further information contact Anthony Cook, Deloitte & Touche, Santiago, Chile on Tel: +56 2 638 4186, Fax: +56 2 639 1522.