The Chilean Internal Revenue Service (SII) issued Official Ruling No. 2507 of 2025, providing clarification regarding the tax treatment applicable to the dissolution and liquidation of companies incorporated abroad that maintain tax obligations in Chile.
According to the ruling, when a foreign-incorporated entity is dissolved, the liquidation process must comply with Chilean tax regulations if the company has assets, income, or tax residency effects within the country.
The Chilean Internal Revenue Service establishes that taxpayers must properly document the dissolution process, including the determination of taxable income, capital gains, and any applicable withholding taxes. In addition, the liquidation must be reflected in the corresponding tax filings and financial statements.
This ruling is particularly relevant for multinational groups, foreign investors, and holding structures operating in Chile, as it reinforces the importance of adequate tax planning and regulatory compliance when terminating foreign legal entities with local economic activity.
Proper advisory becomes essential to avoid tax contingencies, penalties, or future audits by the Chilean tax authority.
For more information, contact us:
cvaldes@bbsc.cl +56 9 8139 3599
