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Reduction of withholding tax on royalties approved by House of Representatives

|Proposed Changes|Chile
Chile

On 17 October 2006, the House of Representatives approved a Bill that reduces and harmonizes the Additional Tax rate applicable on imports of software, technical services and patents. The Bill has yet to be approved by the Senate.


The Additional Tax generally applies on Chilean-source income derived by non-residents. Currently:

-   royalties i.e. payments for the use of or the right to use trademarks, patents, …

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