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Chile banks $1 billion with digital services tax.

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TLDR:

  • Chile has collected over $1 billion from a 19% sales tax on foreign providers of digital services since introducing the measure in 2020.
  • Foreign companies providing digital services to clients in Chile voluntarily register with the tax authority and pay sales tax.
  • Those that don’t register are subject to a withholding tax for services provided to Chilean residents.

Chile has collected over $1 billion from a 19% sales tax on foreign providers of digital services since introducing the measure in 2020. Under Chile’s system, foreign companies providing digital services to clients in Chile voluntarily register with the tax authority and pay sales tax. Those that don’t are subject to a withholding tax for services provided to Chilean residents. Some 426 companies pay the tax, Chile’s tax authority said in a press release Monday. The companies that paid the most were Google, Netflix, Apple, Spotify, and Meta, among others, the ministry said. The tax authority also compiled a list.

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