228 CultureShock! Chile
can get VAT credit from the tax authorities. If you do not
qualify, just answer boleta and pocket your newly acquired
piece of paper.Currency
The Chilean currency is the peso, which fluctuates between
500 and 550 to the US dollar. As in many other countries,
periods distinguish thousands and commas denote fractions
when writing numbers (for example, $ 5.000,30 is five
thousand pesos and thirty cents). For simplicity, cents have
been eliminated in accounting records.
The Unidad de Fomento, or UF, as it is commonly called,
is a value unit that was created to account for inflation at a
time when it had reached double-digit levels. The UF almost
became a parallel currency. Most large ticket items that are
paid over a long period of time, such as real estate, cars, rent,
etc., are still priced in UFs or in the ‘peso equivalent of the
UF’. One UF is equal to a determined amount of pesos and
this figure changes daily. Newspapers list the value of the UF
in each issue. Also be careful to note that dates are written
day/month/year.Taxes
If a foreigner resides in Chile for six consecutive months
within a calendar year or for more than a total of six months
in two consecutive years, he or she is considered a resident
and must pay taxes. Taxes for residents must be paid on
income from either Chilean or foreign sources. Foreigners
working in Chile, however, are only subject to taxes on their
Chilean income during the first three years of residence,
and this period may be extended. Beyond this extra period
foreigners are subject to tax on their worldwide income.
Taxes are annual, and are calculated on 31 December of
each year. Tax returns must be filed in April each year on
income earned in the preceding calendar year.
A real estate tax is levied on all property bought in
Chile. The amount due is equal to two per cent of the fiscal
valuation, and is payable in four installments (April, June,
September and November).