- Foreign-owned software licensed for use in Chile is exempt from additional income tax but subject to VAT.
- Chilean VAT-payer purchasers must self-declare and pay VAT, notifying the foreign provider not to withhold or pay VAT.
- The VAT paid can be used as a credit in the same period.
- Software license expenses are deductible for income tax if requirements and documentation under the law are met.
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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