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I'm in the program and these taxes are not an issue for anyone. Don't let it discourage you from applying. The business environment is good. And consider that:

* companies are taxed on profits not revenues (!!) * legitimate expenses made to foreign companies are not subject to the fees you describe * income earned abroad by new residents to Chile is not taxed for three years (!!!)

Practically, start a foreign-incorporated business to collect payments internationally and start a Chilean company to hire local staff and cover development costs in country. If your Chilean business makes such an embarrassing amount of money that you cannot spend it, then congratulations! You can spend some of your profit to restructure.... :)




>The business environment is good.

What do you mean by this?

>* legitimate expenses made to foreign companies are not subject to the fees you describe

If legitimate means there is some bureaucratic mechanism behind to justify those expenses, it would be a problem if the red tape is too much to bear.

>* income earned abroad by new residents to Chile is not taxed for three years (!!!)

This is nice.

>Practically, start a foreign-incorporated business to collect payments internationally and start a Chilean company to hire local staff and cover development costs in country.

This might be subject to some transfer pricing reviews.

>If your Chilean business makes such an embarrassing amount of money that you cannot spend it, then congratulations! You can spend some of your profit to restructure.... :)

I might be old-fashion, but I believe a company is supposed to pay dividends (hence my concern about taxation). But I guess that if you are running a startup, paying dividends is the least of your problems, staying liquid is the name of the game.


> companies are taxed on profits not revenues (!!)

Businesses are always taxed on profits, not on revenues.


Not true. Seems like quite a few places in the world have a tax on gross receipts - including, of all absurdity, Philadelphia.


same is the case in the state of Washington - 2% B&O tax on revenue.




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