Controversial pronouncement on the standard known as CFC
The tax authority (SII) issued today a highly controversial pronouncement on the standard known as CFC (official 3106/2016). This standard requires taxes in Chile for profits obtained by foreign companies controlled by a resident in Chile if, among other requirements, these profits exceed UF 2,400 (approximately USD 100,000). In this regard, the ruling establishes that such UF 2,400 is calculated in relation to the gross income of the foreign company; not in relation to its profits.
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