International Tax 2026

CHILE Law and Practice Contributed by: Javier Cortés, Juan Pablo Márquez and Gonzalo Pérez, Cortés Del Río Tax & Legal

to the pricing of baseline marketing and distribution activities. However, Chile has not yet signed the Pil - lar One MLI, nor enacted any specific legislation to implement Amount B. 4.2 Pillar One – Amount A Chile has actively participated in the OECD Inclusive Framework negotiations and public consultations on the Multilateral Convention for Pillar One Amount A. However, Chile has not yet signed the Pillar One MLI, nor enacted any specific legislation to implement Amount A. 4.3 Pillar Two Chile has not yet enacted legislation to implement the Global Anti-Base Erosion (GloBE) rules under Pillar Two. At the time of publication, no formal bill had been introduced to the Chilean Congress. Although Chile enacted a tax reform in 2024 which introduced significant changes to transfer pricing, anti-avoidance rules and information exchange, it did not include Pillar Two provisions. 4.4 Specific Features or Deviations of Pillar Two As Pillar Two has not been enacted in Chile, there are no domestic deviations to report at this time. Given Chile’s corporate tax rate of 27%, Chilean sub - sidiaries of foreign multinationals are unlikely to be subject to top-up taxation under Pillar Two in most circumstances, as the effective tax rate generally Chile does not impose a standalone digital services tax (DST) on revenues derived from digital services. Instead, Chile extended its existing VAT framework to cover digital services delivered by foreign providers to Chilean consumers. Under the VAT Law and the relevant Chilean IRS guidance, foreign digital service providers whose services are consumed in Chile must register with the Chilean IRS (using a simplified online registration system), charge 19% Chilean VAT on their services and remit the tax. The Chilean IRS maintains exceeds the 15% minimum. 4.5 Digital Services Tax

a publicly available register of foreign digital service providers. This regime covers streaming platforms, software as a service, e-commerce intermediation, cloud services and online gaming, among other digital services. Income tax treatment of payments to foreign digital providers follows existing withholding rules depend - ing on the characterisation of the payment (royalties, services or business profits). As a general rule, payments abroad for digital services are exempt from WHT, but subject to VAT. 5. Anti-Avoidance and Anti-Evasion Measures 5.1 Definition and Identification of Tax Fraud, Evasion, Tax Avoidance and Abusive Schemes General Anti-Avoidance Rule The Tax Code has had a General Anti-Avoidance Rule (GAAR) in force as from 2015. The GAAR sets forth a presumption that taxpayers are considered to act in good faith, unless proven otherwise. This means that the effects of the acts, contracts or events that a taxpayer undertakes will be recognised in accordance with the legal nature of such acts, contracts or events. However, such presumption does not apply to those taxpayers who, through their acts or actions, elude a taxable event by means of an abuse of the law or simulation. The burden of proof for the existence of tax avoidance due to abuse or simulation lies with the Chilean IRS. Additionally, the existence of abuse of law or simula - tion must be declared by a tax court. Abuse of law There is abuse of law for tax purposes when a material or legal act, individually or collectively considered, has no significant legal or economic consequences for the taxpayer or a third party, other than: • avoiding a taxable event in whole or in part;

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