Taxation in Chile: Key Principles and Obligations
1. Impact of Taxes on Fundamental Taxpayer Rights
The application of taxes can affect the fundamental rights of taxpayers, specifically the principles of freedom and equality. The principle of freedom is affected when taxpayers are obligated to allocate resources to fulfill tax obligations, as mandated by the Internal Revenue Service (SII). This can limit their freedom to engage in other activities. The principle of equality is affected when a uniform tax rate is applied to all taxpayers, regardless
Read MorePublic Finance: Understanding State Financial Activity
What is the Subject of Financial Activity?
- Active Subject: The State
- Taxpayer: The natural or legal person
What are the Phases of State Financial Activity?
- Searching for resources
- Managing resources
- Applying resources
Differences Between State Financial Activity and Economic Activity of Individuals
- State: Seeks resources to meet pressing public or collective needs.
- Private: Meets individual needs.
- State: No particular constraint exists.
- Private: Coercion is governed by private law.
- State: Does not pursue profit.
Key Principles of Administrative Procedures in Chile
Key Principles of Administrative Procedures
The Drive Principle and the Principle of Speed
The principle of speed, also known as the drive principle, compels authorities and officials within the Central Government to act on their own initiative. This applies to both the initiation and continuation of administrative procedures. They must expedite procedures, adhering to deadlines and removing any obstacles that might hinder a prompt and proper decision. As stated in Article 7 of Law No. 19,880, “the
Read MoreSimplified VAT and Group of Companies Taxation Systems
Simplified VAT System
Its regulation is in Article 122. Waiver applies unless the subject meets the following requirements:
- Whether individuals.
- That the amount of income does not exceed a certain amount and that their purchases do not exceed a certain amount.
- Develop some of the activities defined in the regulations.
- That has not waived the objective assessment in income tax.
Features of the Scheme
The supplier-contractor and the employer-customer relationship is not a specialty. But, the fees passed
Read MoreRegional Social Services Laws: Funding and Collaboration
Regional Laws of Social Services
Funding and Collaboration Mechanisms
All of the Social Services Laws make an explicit reference to funding by the CCAA (Autonomous Communities). Powers are delegated to local corporations, or collaboration agreements or grants are established through centers, programs, or activities managed by them.
Key Provisions Across Regions
- Murcia: The Law of Social Services mandates that Murcia annually includes in its budgets the appropriations needed to cover the financing of
Spanish VAT: Taxable Locations, Exemptions, and Non-Taxable Cases
3. Place of Taxable Deliveries Deliveries whose location is Spanish territory accrue Spanish VAT. We must distinguish between goods and services.
A) Place of Delivery of Goods With respect to the orientation property, it may be noted that it is usually taxed at the destination, i.e., where the good is delivered.
Which means supplies of goods made in Spanish territory?
- If dispatch or transport is needed, it will be understood to be located here if the start of the transport takes place in Spanish territory.