The Tax Agent Service Will Enter a New Stage One Year After its Creation

More active commercial arrangements to support foreign
investors are expected to start in 2022.

The following is a review of the progress made by the  Tax Agent Service, created almost one year ago by Depósito Central de Valores (DCV) through its subsidiary DCV Asesorías y Servicios to facilitate the administration of tax requirements for foreign investors not based or domiciled in Chile.

According to Claudio Garín, DCV Operations and Services Manager, this service was created to “expand our offering to depositors with additional services to complement our Securities Custody and Settlement core.”

Almost 12 months after its implementation, he describes the three most challenging elements for the service. “First, the regulatory and taxation framework. Second, the technology and support systems to be used, and finally, the definitions of procedures and controls to ensure that the new service was adjusted to the risk levels that DCV has defined as acceptable.”

It is worth recalling that the main objective of this service is to manage investors (assigning them a taxpayer ID number), ensure tax compliance with transactions, collect invoices, calculate and pay taxes at the IRS, and file annual sworn statements. Similarly, it is in charge of coordinating corporate actions management activities such as dividend payments, maturities, and IPOs. In summary, he adds, “the service makes sure that all foreign investments in Chile meet the tax requirements as per the corresponding regulations to be followed by these investors, currently Resolution 150 of December 12, 2020.”

We currently work with BNP Paribas. “However, in 2022, we want to develop more active business arrangements, since during the first year of operation of our service, our focus has been on its implementation, and now it is up and running.”

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