Tax on digital platforms could collect USD 40 million per year in Chile

According to estimations made by the Economic Commission for Latin America and the Caribbean (ECLAC), applying taxes to digital platforms will allow Chile to collect USD 40 million per year. The figure is lower than the one calculated by the Government, when it presented a measure referred to the Tax Reform, in which it indicated that with a 19% rate, USD 97 million could be obtained. 

ECLAC’s estimations -which includes Chile and other Latin American countries- were exposed in the report ‘Challenges of the digital economy taxation’.Its authorship belongs to Noel Perez Brítez, who is part of the Economic Development Division of the entity. The document mentions the lack of regulation implemented  and also countries that do have regulations on the collection of taxes for OTTs, such as Argentina, Colombia, Costa Rica, Peru and Uruguay.

‘The best way and what we have seen in the international experience is that this is done in a retention on the charge of the credit card’, said Felipe Larraín, Chilean Finance Minister, in August 2018, when he announced that digital platforms would have a levy of at least 10%. Later, the Government proposed to equalize it with the value of VAT (19%).