Below you will find the more trades you relevant issued by the Internal revenue Service during the first half of August.

Income tax

i. Oficio N° 1539, of 01/08/2024

A society subject to the regime pro sme N° 3) (D) of article 14 of the Law on Income Tax (LIR) provided services to a company domiciled in Colombia, for which issued export invoice in dollars.

The applicant states that such provision of services, the colombian society paid a percentage of the amount billed and retained the remaining percentage as a service to you subject to the Agreement between the Republic of Chile and the Republic of Colombia for the avoidance of double taxation, in force between both countries. By reason of this visit if for the purposes of determining the tax base affects the tax of the first category (IDPC), the retention indicated you must add corrected for the variation of the CPI, and with it such adjustment to be part of such a tax base.

Answer:

In accordance with article 12 of the LIR, the income from a foreign source must be acknowledged as a general rule at the time of his perception, so that the tax shall be determined, and its parity to be calculated, at the time in which it is paid. Of course, that the Convention may be applicable and the service provided has generated an income covered by it, as a taxpayer subject to the regime pro sme N° 3) (D) of article 14 of the LIR, you can invoke the credit for taxes paid abroad of article 41 of the LIR, to be part of the income to in point (g) of the N° 1 of that article.

Thus, the total available credit corresponding to the taxes paid abroad must be added to the taxable base of the regime pro smes on the basis of the parity exchange rate between the national currency and the appropriate foreign currency in effect on the date on which the income endured foreign taxes were levied, without appropriate to apply any readjustment or express the quantity according to the parity of the exchange rate in force at the end of the financial year concerned.