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Withholding tax on outbound interest– definition of financial institutions and voluntary register

|Approved Changes|Chile
Chile

Background

Interest paid to foreign or international banks and to foreign or international financial institutions is subject to withholding tax at a reduced rate of 4% on the gross amount paid (instead of the normal rate of 35%).

Until 2001, it was necessary for the financial entity to be approved by the Central Bank to enjoy the reduced rate. This requirement was eliminated by Law…

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