Taxes in Chile (business workshop)

What are taxes?

•  Taxes obligations that contribute to the State as a  requirement (Taxes System)

• People practice all the duties and rights of the business on their names.

• It has your tax file numer

What is a taxpayer?

•  Taxes obligations that contribute to the State as a  requirement (Taxes System)

• Correspond to all the professionals and people who independently execute activities and lucrative operations

•  Legal parameters in your business.

   According to the “Ley de la renta” or Income Tax Law 

Types of taxpayers:

• Third and first category:Incomes’ work.

•   First category=  State capital income and commerical business, industries, minery and others.

   Second category= Incomes’ work. 

What is the difference between a Natural and Legal person?

Advantages of a natural person:

• 1.Easy formation or constitution

  2.There is no constitution cost

• 1. 100% of the responsability is “on your shoulders”

  2. You business depends on your resilience to get ahead.

Disadvantages of a natural person

• 1.100% of the responsability is “on your shoulders”

• 2. Less change to get a financial credit

• 3. Nothing

Advantages of a legal person

• Business created by 1 or more natural or legal people

• Bank loans with lower rates

• Greater availability of capital

• Limited responsability

Legal person disadvantages:

• Higher investment

• Higher start-up costs

• greater ability of capital

• disolving your company is more complicated

Forms of business organization E.I.R.L Private Limited Society or Limited Liability company , select some characteristics:

• Only an owner or partner

• Tax file number (rut) different from the owner

• It can be made up of 1 or more partners.

Advantage of a E.I.R.L :