Starting in Chile, ¿SPA or SRL?

Starting in Chile, ¿SPA or SRL?

When starting a new Project in Chile, one of the first questions arisen among investors is the best type of entity to set up. Below you will find a brief comparison between the two types of companies most commonly set up in Chile: Joint Stock Company (SpA) and Limited...
Organizational Expenses and Start-Up

Organizational Expenses and Start-Up

Income Tax Law allows to activate all expenses incurred in order to start a company such as legal expenses, municipal permits, facilities purchases and other goods that are necessary to start generating income. As these expenses help to generate income in more than...
Tax Depreciation on Fixed Assets

Tax Depreciation on Fixed Assets

  Article 31, item 5 of the Income Tax Law (LIR) states the criteria for accepting the depreciation applied on fixed assets of First Category Income Tax (IRPC) taxpayers who pay their taxes based on actual income demonstrated by full accounting. The charge to...
Penalization for Bad Credits

Penalization for Bad Credits

Article 31 number 5 of the Income Tax Law (LIR) states a mandatory requirement in order to penalize any account receivable that may be uncollectible, noting that it is only appropriate to proceed when all the collection methods have been “prudentially exhausted”. The...