Chile: Change in the definition of the concept ¨Service¨

Andres Landerretche
November 1, 2022

The Chilean Internal Revenue Service published Circular No. 50 with instructions on the forthcoming entry into force of the modifications introduced by Law No. 21,420, which reduces or eliminates tax exemptions. Among its modifications is the change in the definition of the basic taxable event “service” which is defined as “the action or provision that one person performs for another and for which he receives an interest, premium, commission or any other form of remuneration”. With this change all services provided in Chile are taxed with VAT, even when the beneficiary does not have a domicile or residence in the country.

The modifications will become effective as of January 1, 2023, and, therefore, will apply to the services provided as of that date.

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Andres Landerretche

Andrés is the Director of Regulatory Analysis and Design in Latin-America. He graduated with a degree in Law from the University of Chile and has an LLM in International Law from Kings College, London. Andres has over 20 years of international experience working in the Chilean diplomatic service with assignments in South Africa and the United Nations in New York. He has significant experience in external affairs, compliance, communications and community relations in Chile, Brazil, Colombia, Peru, South Africa and Australia.
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