Overseas trusts to face modified reporting standards
Measures from the Servicio de Impuestos Internos (Internal Revenue Service) and approved by the Departmento de Normas Internacionales (Department of International Standards) are to require further information filed on overseas trusts.
The Chilean administration defines a trust as any relationship whereby a person holds the title of an estate for the benefit or another, also known as a beneficiary. The property of the trust is considered a separate fund and is, therefore, not considered part of the heritage of the trustee.
The new rules, however, require trustees who have to pay income tax in Chile to provide certain information to the Internal Revenue Service.
Firstly, the individual will have to provide the name of the trust, their country of residence or, failing that, the place of registration or origin of the trust. The tax identification number is also required.
The beneficiaries, meanwhile, must also provide their name or company name, as well as their residence, registration or origin. The Internal Revenue Service will also have to be supplied with the tax identification number issued by the country of residence, registration or origin.
If there is a delay or failure to provide the required information, this could incur fines as detailed in section 15 of article number 97 of the Codigo Tributario de Chile (Tax Code of Chile).
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