Chile to Go After Online Multinationals

June 25, 2018 Taxation in Chile

Amazon tax in ChileSANTIAGO – Chile is looking to join the growing ranks of companies vying to tax online multinationals such as Uber, Netflix, and Amazon.

Late last week the Finance Minister Felipe Larrain of Chile announced that the government wants to implement new taxes on multinational digital businesses operating in Chile, in an effort to level the playing field between new digital businesses and their traditional counterparts.

Previously, the tax authorities of Chile had no mandate upon which to charge taxes to online businesses such as Spotify, Netflix, and Amazon.

The lack of taxes was due to the fact that the online businesses had no presence in the country, and therefore couldn’t be taxed.

However, no taxation methodology or rate has yet been finalized.

The Minister did state that the government is currently looking at the possibility of indirect transaction taxes or surtaxes charged directly to the credit card of the customer making use of the online service or product.

The government hopes that a bill with the new taxes will be presented to Congress sometime in the next quarter.