29 March 2018

Chile, advances in the strengthening in the action No. 1 of the BEPS project regarding the challenges in the digital economy for taxation

The vertiginous increase in the transactions on the internet, has forced the tax administrations around the world to focus on finding an effective control mechanism in terms of tax collection, since this has become an important concern. This phenomenon that broke into the way of doing business worldwide came to definitely transform the models. An e-commerce company says that 3 out of 4 people under 40 buy online; that 71% do it for convenience; 51% to get best prices; 44.5% for speed and especially satisfaction of the user or consumer. 65% checks out products or services online and that the favorite categories are footwear and clothing, followed by computer products and cell phones.

For multinational companies, tax administrations have created control mechanisms through the registration of foreign currency; regulations on payments; deductibility of expenses and reports through affidavits. However, the main focus is on transactions to unregulated persons or final consumers and in this regard the Chilean administration published Resolution No. 13 for online sales consisting of operations aimed at acquiring goods or providing services in a non-contact manner, paid or remunerated through credit or debit cards, will constitute receipt of the transaction subject to taxes. Although this measure affects local operations, it is a not less important, as it is a task to generate other mechanisms for international operations, such as Netflix; Spotify; Amazon; Alibaba, or any service for downloading applications and digital products.

Mario Cayupán, Socio Auren Santiago de Chile

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