Director of Internal Revenue Service defends Electronic Invoicing, System Integration and Digital Services Tax
14 diciembre 2018

On December 12, the Deputies Finance Committee continued with the debate of the bill to modernize tax legislation (Exp. 12043). The session was attended by the national director of the Internal Revenue Service (SII), Fernando Barraza. He explained the bill´s scope in the collecting entity, as well as the tax results estimated by the Government. He highlighted the positive impact of tax integration, of the introduction of electronic invoicing and of the digital services tax. The Committee will continue to hear views at its next meeting, with a view to passing the bill in January.

In his presentation, Barraza explained the changes that the bill entails for SII. He said it will improve the relationship with the taxpayer since it will digitalize the communication mechanisms, allowing non-compliance to be communicated electronically. This will be complemented by the creation of the Taxpayer’s Defender, who will mediate between these two poles and help improve the relationship. He also assured that the reform will have a “neutral” result since the costs for the reintegration of the tax system will be cancelled out by the application of the electronic invoice.

Finally, Barraza spoke of the incorporation of the new digital services tax (ISD). He explained that “it will allow Chile to be at the forefront of international regulation in this area”. The SII will be in charge of administering the payrolls of withholding agents and digital service providers, having the power to define which may be included and which may be excluded.