The Chilean tax authority (Servicio de Impuestos Internos - SII) has published Letter Ruling No. 1039 of 23 April 2021 concerning the application of VAT on software development services provided from abroad. The letter ruling is in response to questions regarding withholding tax and VAT obligations from a Chilean company providing services to another Chilean company, which includes the outsourcing of software analysis, design, and development activities to a company established in Peru.
The…