Tax Return Software In Chile: A Simple Guide
Choosing the right tax return software in Chile can transform a daunting task into a breeze. We’ve got your back in this!
With a variety of options tailored to meet local requirements, these tools simplify the process, ensuring accuracy and efficiency. In this guide, we explore the top tax return software options available in Chile, helping you make an informed choice. Say goodbye to tax season stress and hello to hassle-free filing!
Let’s dive in!
What Factors Should Be Considered When Choosing Online Tax Return Services?
Some general considerations when selecting online tax return software in Chile include:
- Compliance: Ensure that the software complies with Chilean tax laws and regulations, including requirements for VAT, income tax, and any other relevant taxes.
- Features: Look for software that offers the features to prepare and file your taxes accurately and efficiently. This may include support for different tax forms, calculation of tax liabilities, electronic filing options, and integration with accounting or financial software.
- User-Friendliness: Choose user-friendly software that is easy to navigate, especially if you’re unfamiliar with tax procedures or accounting principles.
- Customer Support: Consider the level of customer support provided by the software provider, including access to help resources and technical support channels and responsiveness to inquiries or issues.
- Security: Prioritize software that employs robust security measures to protect your sensitive financial and tax information, such as encryption protocols and secure data storage practices.
- Cost: Evaluate the software’s pricing structure, including any subscription fees, transaction charges, or additional costs for advanced features or support services. Ensure that the pricing is transparent and aligns with your budgetary constraints.
It’s advisable to research multiple software options, read reviews from other users, and possibly even request demos or trials to assess the software’s suitability for your tax preparation needs in Chile.
Additionally, consulting with a local tax advisor or accountant can provide valuable insights and guidance in selecting the most appropriate tax return software for your situation.
How To Submit VAT Returns In Chile?
You can file your returns in Chilean pesos (CLP), US dollars (USD), or euros. If your transactions involve other foreign currencies, converting them into one of these three currencies is essential.
What Are The Important Timing Considerations?
VAT returns must be filed at regular intervals throughout the year. You can choose between monthly or quarterly declarations.
Regardless of the chosen interval, the deadline for filing and payment is always the 20th day of the month following the conclusion of the reporting period.
Note: Filing is not mandatory if you haven’t generated any income from Chilean customers during a specific tax period. There’s no requirement for a “Nil declaration.”
What Is The Filing Procedure?
Before filing, gathering all necessary information regarding your taxable sales in Chile during the preceding quarter is advisable.
The tax authority’s website recommends having the following details ready:
- Total sales and income
- Total purchases and expenses
To initiate the filing process, access the Digital Services VAT portal online. You can navigate to it by selecting ‘Send Declaration’ on the relevant page of the tax authority’s website.
Complete Form 129 accurately. Detailed instructions in English are available to guide you through the process.
Upon submission, the system will automatically generate a filing certificate. If you require a copy of this certificate for your records, it can be obtained from the “Check Status” section of your portal account.
What Is The Payment Procedure?
Regarding payment, you can settle the amount owed in three distinct currencies: Chilean pesos, US dollars, or euros.
The applicable tax must be remitted via SWIFT transfer for declarations made in foreign currencies. A SWIFT code or BIC code (Bank Identifier Code) facilitates this transaction, uniquely identifying the receiving bank during international transfers.
Additional payment instructions will be automatically displayed on the screen for your convenience after completing the filing process.
What Are The Updated Deadlines For Tax Returns In Chile In 2024?
On October 4, 2023, the Chilean national tax authority issued Resolution No. 116, outlining revised submission deadlines for various forms for the tax year 2024.
The new deadlines for forms are as stated below:
- March 1: Forms 1811, 1822, 1834, 1891, 1900, 1902, and 1903;
- March 11: Forms 1896 and 1898;
- March 14: Form 1948 (from open joint stock companies);
- March 18: Forms 1870, 1871, 1873, and 1890;
- March 22: Forms 1949 and 1955;
- March 25: Forms 1812, 1832, 1835, 1862, 1895, 1897, 1899, 1904, 1909, 1914, 1919, and 1932;
- March 27: Forms 1828, 1874, 1889, 1894, and 1948 (for companies with legal entity shareholders);
- March 28: Forms 1829, 1840, 1841, 1843, 1879, 1887, 1922, 1933, 1944, 1953, 1956, and the partnership forms 1943, 1947 and 1948
- May 17: Form 1837; and
- June 28: Forms 1847, 1866, 1867, 1907 (the annual transfer pricing report), 1913, 1926, 1930, 1937 (the country-by-country report), 1945, 1946, 1929, 1950 (the master file), 1951 (the local file), and 1952.
Which Is The Best Tax Return Software In Chile?
Choosing the best tax return software in Chile depends on your specific needs, whether you’re a taxpayer, a freelancer, or a business owner.
However, based on features, user reviews, and overall efficiency, the following options are considered some of the best in Chile:
SII Chile. Guía Informativa
The “SII Chile. Information Guide” software is helpful for people dealing with taxes in Chile. It’s easy to use and gives valuable info about different tax tasks you might need to do with the Chilean Tax Service.
➡ One of the best things about the app is that it explains everything you can do with the SII.
When you open the app, you’ll see a section that discusses each task you might have to do with the SII. Whether you’re getting your RUT or doing your taxes, the app tells you everything you need to know.
Plus, the app doesn’t just give you information—it makes it easy to understand. It explains things in a simple way that helps you feel more confident about dealing with taxes in Chile.
Overall, the “SII Chile. Information Guide” app is an excellent tool for anyone who wants to manage their taxes in Chile better. It gives you all the information you need right at your fingertips.
The app provides comprehensive information about various topics, including:
✅ UF (Unidad de Fomento): This unit adjusts prices and debts for inflation. It’s updated daily based on Consumer Price Index (CPI) changes.
✅ Contributions: These are taxes paid annually on real estate properties. They help fund municipal expenses and are known as “real estate contributions.”
✅ Tax Appraisal: This is an estimate of a property’s value conducted by the Internal Revenue Service (SII) for tax purposes. It’s used to calculate contributions and other property-related taxes.
✅ Solidarity Loan And Tax Declaration Deadlines: The app provides information about when forms related to solidarity loans and tax declarations must be submitted. This is particularly helpful for users filing their taxes online.
✅ Electronic Invoice And Digital Certificate: These are important for tax filing. The app explains how to obtain and effectively use them.
✅ Unique Key: This is necessary for online procedures with the SII. The app offers detailed guidance on how to obtain and utilize it.
Additionally, the app features a section dedicated to SII offices across Chile. Users can locate nearby offices, view operating hours, and find contact details. This is especially useful for those needing to conduct in-person procedures.
Another highlight is the forms section, which provides detailed instructions on completing commonly used forms in the SII. Users can also download these forms directly from the app, which is convenient for those without access to a printer.
Get Started with SII Chile. Guía Informativa 🔥
Avalara
Avalara aspires to be part of every transaction in the world. With this tax compliance software solution, your business can automate manual processes and reduce errors, increasing compliance and saving time and money.
Businesses of all sizes use Avalara to help with tasks throughout the tax compliance process, including registration and licensing, calculation, document management, reporting, and e-invoicing.
Simplified Digital Taxation Scheme
Foreign providers can utilize a streamlined registration process facilitated through a dedicated online portal accepting submissions in English and other languages.
Compliance obligations for affected businesses are minimal: There is no requirement to prepare invoices or VAT books. However, there is no provision for reclaiming input VAT.
VAT returns can be filed monthly or quarterly, with taxpayers given the flexibility to choose the frequency. Submissions are due by the 20th of the month following the end of the reporting period.
Responsibilities of Marketplaces Although the implementing legislation suggests that only the underlying supplier of the e-service is responsible for VAT, the Chilean IRS has clarified that marketplaces selling apps on behalf of the supplier will assume the primary VAT role.
VAT Withholding by Payment Providers In instances where the provider is not registered for VAT with the Chilean tax office, payment providers are required to withhold the applicable VAT. This includes credit and debit cards, payment wallets, and banks facilitating transfers.
Business-to-Business Supplies The reverse charge mechanism should be applied to transactions involving VAT-registered businesses as customers. This entails the customer recording the input VAT on behalf of the foreign provider.
Products And Services
- Avalara VAT Reporting
- VAT Registration & Returns
- AvaTax Calculation software
- MTD Cloud
Avalara E-Invoicing and Live Reporting
Conclusion
Navigating tax returns in Chile is significantly easier with the right software at your disposal. By selecting a tool that fits your needs, you can streamline the filing process and ensure compliance with local regulations.
Embrace the convenience and accuracy of modern tax return software, and make tax season a smoother experience.
File Effortlessly!
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