Download PowerPoint Presentation - Reforma Tributaria 2014 en Chile

Is the seller a CT taxpayer based
on effective income or did it
dispose the property in favor of
a related party?
Yes
Ordinary income
(CT + Final Taxes)
Yes
Prior to the Tax Reform:
Generally a non taxable
income
No
Did the seller acquire the
property prior to year 2004?
No
No
Did the seller acquire the
property prior to September 29,
2014?
Yes
TAX COST DETERMINATION
Adjusted tax cost +
improvements informeda
to the IRS
Adjusted tax cost +
improvements informed
to the IRS
Final Taxes (on a perceived or
accrued basis, at its election)
+ settlement option in the
case of GCT
No
Market value as of
September 29, 2014
Adjusted 2017
tax appraisal
Has the seller owned the
property for more than 1 year,
or for more than 4 years in case
of apartments sales per floors or
land subdivisions?
Yes
Non taxable income
No
Does the accumulated capital
gain exceed UF 8,000
(approximately USD 300,000)?
Yes
Capital gain subject to WHT
(on a perceived or accrued
basis, at its election),
creditable against IDT
No
Is the seller a Chilean resident?
Yes
Capital gain creditable against
IDT, at election:
GCT (on a perceived or
accrued basis, at its election)
+ settlement option
Substitution tax at a 10% rate
(on a perceived basis)
*The content of this document is provided by Carey y Cía. For educational and informational
purposes only and is not intended to be exact or complete, and should not be relied on as a
substitute for legal advice. Carey y Cía. is not responsible for any consequences resulting from
the action, lack of action or decision regarding the information contained in this publication.
Notes:
 This diagram includes the amendments introduced by the Tax Reform Simplification Law No.
20,899.
 Tax treatment applicable to the disposal of real estate properties located in Chile made by natural
persons as of 2017.
 Capital gain subject to taxes is determined by the difference between the tax cost and the sale
price.
 The use as a tax cost of the market value as of September 29, 2014 requires an assessment that
must be reported to the IRS until June 30, 2016.
 Settlement is an option to distribute the capital gain in the exercises in which the property was
owned, up to a maximum of 10 years.
 The acquisition date is the date of registration in the Real Estate Registry (rulings No. 2,398/2011
and No. 209/2012).
 The IDT credit equals the proportion of the tax paid that represents the value of the property in
relation to the total allocation.
 Abbreviations:
• CT = Corporate Tax.
• Final Taxes = GCT or WHT.
• GCT = Global Complementary Tax.
• IDT = Inheritance and Donations Tax.
• UF = Unidad de Fomento.
• WHT = Withholding Tax.