Chile Clarifies Maximum Foreign Tax Credit

The Chilean tax authority (Servicio de Impuestos Internos - SII) has published Official Letter No. 2801 of 12 November 2019 concerning the determination of the general limit for a taxpayer's total maximum foreign tax credit in a year, including whether Chilean source income that is taxed abroad may be considered when determining the maximum amount. The letter clarifies that in determining the maximum foreign tax credit allowed, the net foreign income of the taxpayer is multiplied by 35% in th…