The Chilean Internal Revenue Service (SII) recently introduced two key resolutions - Resolution Ex. SII No. 101 and Resolution Ex. SII No. 105—that set new guidelines for non-resident entities providing taxable digital services in Chile.
Here’s a summary of the main points from both resolutions:
Tax Documentation for Digital Platform Workers without Residency in Chile
This resolution defines compliance requirements for digital platform workers and companies that lack residency in Chile. Key obligations include:
Electronic Invoices: Digital service platforms without a presence in Chile must issue electronic third-party service invoices for services provided by independent contractors, fulfilling tax documentation requirements for payments made to these workers.
Appointed Representative: A designated representative in Chile is required to manage documentation and compliance for the platform, including the submission of Form 1879 for annual reporting on tax withholdings.
Simplified Tax Regime for VAT Compliance
Non-resident entities offering digital services to individuals in Chile must register under this new system if they do not already have tax residency in the country. The purpose is to streamline VAT compliance by enabling foreign service providers to declare and pay VAT in a simplified manner.
Registration requires filling out the “Simplified Tax Regime Registration Form” on the SII’s online platform, available in English and Spanish.
Providers can declare and pay VAT monthly or quarterly in USD, EUR, or CLP. Changes to the reporting frequency or currency can be made annually.
Non-resident providers currently registered under the old rules retain their status but must now comply with the updated guidelines.
This new registration requirement goes into effect on November 1, 2024.
These new regulations emphasize the importance of VAT compliance for foreign digital service providers operating in Chile, ensuring alignment with Chile’s tax regulations.