- The Chilean Internal Revenue Service issued a clarification on additional tax and VAT for advertising services to a nonresident parent company.
- The taxpayer is a Chilean subsidiary of a UAE-based parent company.
- Payments for advertising services may be exempt from additional tax under certain conditions.
- Advertising services cannot be classified as technical services if they qualify as advertising.
- An additional tax exemption may apply for advertising services related to the export of services to clients not domiciled in Chile.
- Such services are not subject to VAT as they are not provided in Chile.
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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