Optimize your internationals taxes
NSS accompanies you at every step of your international expansion, optimizing your tax burden and ensuring regulatory compliance in all the jurisdictions where you operate.
Global tax strategies to address the growing complexity of the marketcomplejidad del mercado
Our goal is to improve your ability to comply with global tax laws, aligning your tax strategies with your business goals to strengthen your financial position, today and in the future.
Treaties to avoid double taxation (CDTI)
Solutions and compliance for companies and business groups to maximize profits and optimize tax burden
Transfer Pricing
NSS ensures that your transfer pricing policies comply with international regulations
VAT
Management of the VAT credit and tax debit cycle. Export VAT refund requests, and more.
Representation before SII and controversies
We represent the interests of clients in international tax disputes, providing expert defense and effective strategies for resolving disputes with tax authorities in various jurisdictions.
Residency and mobility
NSS supports you in managing the international mobility of your employees, ensuring that your operations comply with tax obligations in each country where you operate.
Wealth Management
NSS offers specialized consulting for high-net-worth individuals and families, designing tax strategies that protect and optimize your wealth in an international context.
We represent the interests of clients in international tax disputes, providing expert defense and effective strategies for resolving disputes with tax authorities in various jurisdictions.
Main types of withholding
Simply put, withholding is a tax that is deducted from a payment before it reaches the final recipient. It is withheld by the person making the payment and then paid to the tax authority.
Dividends
It applies to the dividends that a company pays to its shareholders.
Example: If a company in Chile pays dividends to a shareholder abroad, it could withhold a percentage of those dividends as a tax and remit it to the Chilean treasury.
CDT benefit: Under the CDT between Chile and the United States, the withholding rate on dividends can be significantly reduced, from 30% to 5% or 15%, depending on the shareholding.
Interests
It applies to the interest that an entity pays to a creditor or investor, generally in loan situations.
Example: A bank in the U.S. pays interest to a Chilean resident on a deposit; the bank withholds a portion of that interest as withholding tax.
CDT benefit: The CDT can reduce the retention rate from 30% to 10% or 15%, making it easier for signatory countries to invest.
Royalties
It applies to payments made for the use of intellectual property, such as patents, copyrights or trademarks.
Example: A company in Chile pays royalties to a company in the U.S. for the use of its technology. The Chilean company withholds a percentage of the payment and delivers it to the treasury as a tax.
CDT benefit: The royalty retention rate under the CDT can be reduced to 10% or even 2% in specific cases, such as the use of scientific equipment.
We have the answers
What is international taxation?
International taxation refers to the tax system applicable to transactions and transactions involving more than one country. This includes taxation on income earned abroad, as well as the tax obligations of companies and individuals operating in different jurisdictions.
How does the CDT between Chile and the United States affect companies?
The CDT between Chile and the United States, in force since January 1, 2024, significantly reduces retention rates in dividends, interest and royalties, facilitating investment and trade between the two countries. This especially benefits companies that carry out cross-border transactions.
How can I avoid double taxation on my international income?
To avoid double taxation, it is essential to take advantage of agreements such as the CDT. These agreements allow you to claim tax credits in your country of residence for taxes paid abroad. In addition, it is advisable to seek specialized advice to ensure compliance with local and international regulations.
What should I consider when making international investments?
When making international investments, it's important to consider the tax implications in both countries, including withholding rates, the possibility of double taxation, and the benefits of any existing CDT. In addition, it is crucial to properly structure investment to maximize tax benefits.
How can I optimize my global fiscal position?
To optimize your global tax position, it's essential to analyze your business structure and consider strategic tax planning in multiple jurisdictions. This includes taking advantage of tax exemptions, deductions and credits available in different countries, as well as using international agreements such as CDTs to minimize the tax burden. At NSS Abogados, we help you identify opportunities and develop a tax strategy that aligns with your global business objectives.
What is a Double Taxation Avoidance Agreement (CDT)?
A Double Taxation Avoidance Agreement (CDT) is an agreement between two countries that seeks to prevent taxpayers from paying taxes on the same income in both countries. These agreements establish rules for how taxes should be applied and can reduce or eliminate certain tax burdens.
What is a withholding tax?
A withholding tax is a tax that is deducted from a payment before it reaches the final recipient. It is used to ensure that taxes are collected effectively, and can be applied to dividends, interest and royalties in international transactions.
What is the benefit limitation (LOB) in a CDT?
The benefit limitation clause (LOB) in a CDT restricts the benefits of the agreement to those taxpayers who meet certain criteria of economic substance in their country of residence. This prevents the misuse of agreements to obtain undue tax advantages.
Can NSS Abogados help me with international tax planning?
Yes, at NSS Abogados we offer comprehensive advice on international tax planning, helping our clients to minimize their tax obligations and comply with all applicable regulations in their cross-border transactions.
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