Chile: Expanded required reporting by foreign investors, indirect sales

Required reporting by foreign investors, sales in Chile

The tax administration in Chile has provided a form—Form 1921—that must be filed by foreign investors to report the indirect sale of assets located in Chile, that is, asset sales that are subject to taxation according to the provisions of the Chilean income tax law. Broadly, these measures apply with respect to restructuring or upper tier sales of entities that indirectly hold Chilean assets. The deadline for filing Form 1921 for transactions occurring between 1 January 2013 and 5 August 2015, is 30 October 2015.

Related content

New form to report transactions

Under Chilean income tax law, capital gains from the indirect sale of Chilean assets is subject to taxation. For example, the sale of a 10% or greater interest in a foreign entity that directly or indirectly holds an interest in a Chilean entity constitutes an indirect sale of Chilean assets, and thus subject to Chilean capital gains tax.

Foreign investors in Chile that sell, buy, or participate in any corporate restructuring involving an indirect transfer of assets located in Chile are to file Form 1921 to report: (1) the sales price; and (2) the current fair market value of the underlying assets.

These taxpayers must also include in Form 1921 other information relevant to the transaction—such as the identity of the parties to the transaction; a description of the social rights, shares, quotas or titles sold the price and payment details; a description of the Chilean underlying assets; and a determination of the indirect transfer capital gain and the applicable tax regime.

Form 1921 must be filed—even if no taxes are due from the sale—by any foreign investor that sells shares, quotas, or any other interest in the entity being transferred. Normally, if the selling foreign investor files Form 1921, the buyer or the transferred entity need not file a Form 1921 on their own. However, if the buyer or the transferred entity does not agree with the information provided by the seller, a corresponding statement presenting the information consider relevant to the transaction needs to be filed by the buyer or transferred entity.

Foreign investors must file Form 1921 by the last working day of the month following the transaction and filed with the office of the Chilean tax authority that corresponds to the taxpayer’s (or its representative’s) domicile in Chile. However, for transactions occurring between 1 January 2013 and 5 August 2015, the deadline to file Form 1921 is 30 October 2015.

KPMG observation

Tax professionals note the long reach of Form 1921—it must be filed to report the transfer of a 10% or greater interest by a non-Chilean seller in a non-Chilean entity that holds Chilean shares, with Form 1921 to be filed by either the seller, the buyer, or the Chilean entity whose shares were indirectly transferred. Some of the parties to the transaction may not have the necessary information to file Form 1921 or may find that accessing that information is cumbersome and impractical. Regardless, the sale is taxable in Chile and requires a Form 1921. If a Form 1921 is not filed, the parties involved will not be in compliance with the Chilean tax law.


For more information, contact a tax professional with KPMG’s Americas Center:

Devon Bodoh | (202) 533-5681 |

Alfonso A-Pallete | (305) 913-2789 |


Or contact a KPMG tax professional in Chile:

Rodrigo Stein | +56 2 2798 1341 |

Andres Martinez | +56 2 2798 1401 |

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal



KPMG's new digital platform

KPMG's new digital platform