Chilean Tax Agency Clarifies VAT Exemption for Cultural Services

• The Chilean Internal Revenue Service has issued Resolution No. 6 to clarify the VAT exemption for cultural services.
• The resolution defines “cultural services” as those related to research, training, mediation, management, production, creation, and dissemination of cultures, arts, and heritage.
• It provides criteria for cultural associations’ eligibility, distinguishing between those made up of natural persons and other entities.
• Cultural associations must have a maximum of 35 percent income from non-cultural activities.
• The resolution emphasizes the importance of personal work over capital for tax classification.
• Taxpayers must submit relevant tax documents and present a sworn declaration.
• These measures are effective from January 1st.

Source: news.bloombergtax.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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