Exempt Resolution No. 11: form and opportunity to accredit residence.
In relation to exempt resolution No. 11 of 2019, which establishes the form in which the residence of people without domicile or residence in Chile must be accredited (and without prejudice to our efforts with the Internal Revenue Service to make matters more flexible linked to this resolution), we inform that, in the case of receiving information provided by the non-resident shareholders and custodians, DCV Registros will accept the requirements of the new resolution. Thus, receiving the residence certificates, in such a way to make the information available to issuers, so that they can validate and determine the withholding and credit conditions that may be applied.
In this sense, we instruct through this bulletin the form and opportunity to accredit residence.
How to accredit residence of non-resident shareholders in Chile?
Non-resident shareholders in Chile or a third party authorized by it, may submit the original tax residence certificate issued abroad at DCV Registros’ offices. The document must contain, at a minimum, the background indicated in numeral No. 1 of the resolution.
Additionally, non-resident shareholders in Chile may submit copies of the residency certificate in electronic format. Regarding documents with advanced electronic signature, these documents must comply with the conditions established in Law 19,799.
When to prove residence?
Resolution No. 11 establishes that for the 2018 financial year, the first investment certificate will correspond to the investment month in which it was carried out and a new certificate must be issued in the months of April, June or December. It is presumed that the residence is counted one year from the date of issuance of the certificate. Therefore, in order to obtain the tax benefits, the dividend payment of the issuing company must be accredited in advance. This should regard the amounts paid, remitted, distributed or withdrawn as of January 1st, 2018. In the event that the required document is not received, DCV Registros will inform the Issuer or Custodian Banks of such circumstance on the corresponding date.
It should be noted that, in order to obtain the tax benefit, the country where the non-resident shareholder resides, and therefore the issuer of the documentation, must have signed an effective agreement to avoid double taxation with Chile.