ES
ENAnyone with no domicile or residence in Chile is taxed on their Chilean-source income according to the rules applicable to each type of income. Article 60 of the LIR sets, for the income it covers, a general rate of 35% and a 20% rate for the specific case of compensation for scientific, cultural or sports activities carried out in Chile.
The general rule: 35% Additional Tax
A non-resident who provides services in Chile — for example, a consultant who comes for a few weeks to run a project — generates Chilean-source income under article 10 of the LIR, because the activity is physically carried out in the country. That income is subject to the Additional Tax under article 60 LIR, at a 35% rate on gross income, provided it is not subject to the special rules of articles 58 and 59 LIR — which govern other non-resident taxation cases, such as branches or agencies and certain loans or royalties, with their own rates.
The reduced 20% rate
The same article 60 sets a 20% rate for compensation for scientific, cultural or sports work carried out in Chile by people with no domicile or residence in the country. It is a narrow exception for those categories of activity, not a general rule for every non-resident.
Who withholds and pays the tax
If the payer is a company domiciled in Chile, that company must withhold the Additional Tax under article 74 No. 4 of the LIR at the time of payment or remittance. The case in which the obligation to file and pay falls on the income recipient — because there is no local withholding agent — corresponds to the specific situation resolved by SII Ruling No. 2151 of 2016; it should not be generalized to every payment structure without first checking whether a withholding agent is in fact obligated.
An important nuance: the SII's 2016 rulings cite the old "first six months" rule for losing non-resident status. That doctrine predates Law 21.210 of 2020, which set the current rule of 183 days within any 12-month period (art. 8 No. 8 of the Tax Code). When reading pre-2020 rulings, the standard should be updated to the current rule.
Related articles
- Start with the central guide to Chile's 183-day tax residency rule.
- Continue with a related article in this series.
Frequently asked questions
No. A non-resident only pays the Additional Tax on Chilean-source income (generally 35%, or 20% in the scientific, cultural or sports cases), not the Global Complementary Tax that applies to residents on worldwide income.
They become a tax resident from day 184. From that point, and within their first 3 years, they continue to be taxed only on Chilean-source income, but no longer necessarily under the article 60 Additional Tax: depending on the type of income, the Global Complementary Tax or the Second Category Single Tax may apply instead, per SII Circular No. 63/2021.
Not necessarily; what determines taxation is where the activity is physically carried out (art. 10 LIR), not the employer's country of domicile or where the contract is signed.
Do you need an assessment of your situation?
Each case depends on the dates, income types, country of origin and any applicable treaty. Izquierdo Deramond Consultores prepares tax opinions for foreigners who work or settle in Chile.
- Book a meeting: calendly.com/izquierdoconsultores
- WhatsApp: +56 9 8892 5401
- Email: gregorio@consultoresid.cl
This article is for informational purposes only and does not constitute tax advice. Each situation depends on its specific facts and the law in force at the time of the activity. To assess your case, request a tax opinion with IDC.
OFFICIAL SOURCES CONSULTED
- Art. 8 No. 8 Tax Code (Law 21.210)
- Art. 10 and 60 of the Income Tax Law
- SII Ruling No. 2151 of 2016.