TAX ID AND BUSINESS START UP

Nonresidents that require tax id

Nonresident individuals and entities that wish to start business activities in Chile must obtain Tax ID, known as “RUT” (acronym for its Spanish name “Registro Único Tributario”), including those foreign individual acting as attorney (in addition to having Chilean residency plus a visa according with the job, to be able to appear as attorney at the Tax Administration).

 

Nonresidents that are required to inform the business start up

Nonresident individuals and entities that wish to start business activities in Chile are required to inform that situation to the Tax Administration, including those entities that carry on an activity in Chile through a permanent establishment.

Notwithstanding, the taxpayer is not required to report the start of the following activities:

• Acquisition of shares and similar rights;
• Investment in real estate property.

 

Procedure to obtain tax id and to inform business start up

The Tax ID must be requested at the regional office corresponding to the taxpayer’s address.

For foreign individuals that only require to obtain Tax ID, the Foreigners ID Card is required; their passport if the latter have not being obtain or the ID Card of their own country, in those cases of Visa Weaver Conventions in force.

For foreign individuals that require both inform start of activities and obtain Tax ID, the foreigners ID Card is mandatory.

For nonresident entities, their incorporation deed is required, with a proper legalization or apostille certification.

 

NONRESIDENTS THAT REQUIRE A REPRESENTATIVE

Nonresident individuals, either Chilean or otherwise, who wish to obtain Chilean Tax ID or declare the initiation of commercial activities in the country, are compelled to authorize a representative with residence in Chile to act on their behalf when dealing with the Tax Administration. In this regard, the POA should include the ability to perform at least the following procedures:

• Filling of Forms 4415 and 4416 (regarding Chilean Tax ID, beginning of commercial activities and update information); and
• To be notified by the Tax Administration and appear upon summoning

Nonresident entities may act through the attorney appointed on the incorporation deed and through general or special powers of attorney granted for those actions.

The powers of attorney may be granted either in Chile or abroad. If granted abroad it can be legalized or certified with an apostille, while if granted in Chile it must be certified by a public notary, by either public deed or authenticated private agreement, through the signees’ passport or their corresponding ID cards.