Publication of exempt resolution No. 11
As you are aware, Law No. 20,780 (“Tax Reform”), which was published in 2014, introduced modifications to the current tax system in our country, incorporating new taxation regimes as of January 1st, 2017. This law establishes, among other things, that sociedades anónimas will be subject to the Semi Integrated Regime, in accordance with the rules introduced by the Tax Reform and the Amendment to the Reform (Law No. 20,899 of 2016).
The aforementioned reform is currently in force and those dividend payments whose profits come from the 2017 tax year and onwards are subject to it.
The principal requirements of the tax regulations affect non-resident shareholders in Chile, mainly in relation to the certification that is issued by the competent authority of the country of residence that non-resident investors must deliver-directly or through their Custodians-. and that their countries have or do not have agreements that to double taxation. In this regard, SII has released exempt resolution No. 11, by means of which it makes certain requirements more flexible and which will be in force as of the 2019 tax year, with respect to the amounts paid, remitted, distributed or withdrawn as of January 1st, 2018: See more information.
Notwithstanding our efforts with SII aimed at defining matters related to this resolution, in case of receiving information and/or background provided by non-resident shareholders and custodians, DCV Registros, according to the agreed terms, will make such information available to the issuers, so that they can validate the information and determine the withholding conditions and credits that must be applied.