The Directorate General of International Economic Relations (DIRECON) together with the Chamber of Commerce of Santiago (CCS) launched an updated version of the “Manual for the Exporter of Services”, the first version of which was published in 2015. This version incorporates the changes introduced by Law No. 20,956 that provided measures to boost productivity, seeking to favor especially the exporters of the sector.

Among the measures incorporated is the strengthening of the system of qualification of export services of the National Customs Service, which introduces new ways to access the benefits contemplated for those who export services. They also include mixed benefits, which allow that, in the same invoice, services carried out in Chile and part abroad, may be recognized, in their entirety, as export by our legislation.

Likewise, it is explained that the possibility of services qualified as export by Customs may access the mechanism of credits for taxes paid abroad, when there is no current double taxation treaty. This means that the mere fact that an export of services is covered by a Single Exit Document (DUS), allows the operation access to recover taxes paid abroad as a credit against national taxes.

This version also considers that from the 1st of January of this year, the central aspects of the tax reform that established the validity of two tax systems came into force: the attributed income system and partially integrated system. In addition, a series of amendments were introduced to Article 14 of the Income Tax Law, which contains a simplified tax regime for micro, small and medium-sized enterprises.

These fundamental changes to the regulatory and tax system have a high incidence on the system of qualification of export services of the National Customs Service and also on the credit system for taxes paid abroad in force in Chile. This credit system is applicable, if there is no double taxation agreement, when income is taxed abroad for withdrawals of profits and dividends, income from permanent establishments, passive income and the use of trademarks, patents, formulas, technical consultancies and other similar services and services qualified as exports and also when there is a current double taxation agreement where, by the application of said agreement, Chile must grant credits for income that was taxed abroad.

For more information you can consult the manual mentioned in the following link:

http://www.ccs.cl/prensa/publicaciones/ManualExportadorServicios.pdf