Indirect taxes include VAT (IVA, Impuesto sobre el Valor Agregado), sumptuary taxes, beverage tax, tobacco tax, fuel tax, tax for legal services and tax for international business.
Direct taxes are for investment income, earned income (that is only used for calculating the global tax) and concrete taxes for specific buy/sell transactions, specific incomes, small entrepreneurs and lottery prices.
Your international income for the first three years will not be taxed and neither will be your overseas pension if you are retired. However, you will be taxed on what you earn from Chilean sources, according to a progressive scale:
| Lower than 13.5 units | 0% |
| 13.5 - 30 UF | 5% |
| 30 - 50 UF | 10% |
| 50 - 70 UF | 15% |
| 70 - 90 UF | 25% |
| 90 - 120 UF | 32% |
| 120 - 150 UF | 37% |
| Above 150 UF | 40% |
Note that the value of a UF, “unidad de fomento” is recalculated all the time, but tends to be between the 35,000 CLP to 40,000 CLP mark. You can check online for the most up-to-date figures. It is also important to note that these are the official tax brackets, some things might not be so 'official', and other deductions from your salary are very possible.
After three years, Chile will become your “tax home” and your international income will be taxed. However, Chile avoids double taxation and has agreements (DTAAs) in place with many countries, so you should check if your country has such an agreement in place in order not be taxed twice on the same income.
You can find all the information on taxes, deductions and exceptions on the official website for SII , (Servicio de Impuesto Internos, Service for Internal Taxes).
Income tax returns
Your income tax return must be filed in April and you must inform the authorities about your income received the previous year.
Afterwards, you will be told whether you must pay or be reimbursed. The SII delivers an online proposal for your income tax return with an estimation which is automatically generated onto the document (F22), summing up the last income for the previous year.
You should check it and fill it in. You can do the entire process online, by phone or in person. However, a RUT number is required since you will be asked for it when you apply for the income tax return.