Before pointing out the modification, it is pertinent to mention two (2) circular documents, No. 7 of 2018 and No. 39 of 2016. The first one provides instructions regarding the application of the Hague Convention that abolishes the legalization requirement of foreign public documents (“Apostille Convention”), while the second one deals with various amendments enacted by Law No. 20,899 to the Income Tax Law and Law No. 20,780.
In this regard, Circular No. 7 in its Chapter IV, on documents issued within the framework of tax treaties to avoid double taxation or exchange of information, instructs that:
“by prior agreement between the competent authorities of a tax treaty and by means of the mutual agreement procedure provided for in the respective treaty, certificates issued by the tax authority of the other country may be accepted and validated without the need for legalization or apostille.“
Likewise, Circular No. 39, in Title 5.2, referring to income or amounts regulated by an agreement in force to avoid international double taxation, provides in its letter c) that:
“the non-domiciled taxpayer nor having residence in Chile must prove his residence to the withholding agent by delivering a certificate issued by the competent authority of the other Contracting State, adding that such certificate must be submitted duly translated, legalized or apostilled, as the case may be. ”
Likewise, the aforementioned circular also allows the authenticity of a certificate of residence issued by the competent authority of the other State, in accordance with the provisions of the Convention, to be verified directly, without the need for the aforementioned legalization, by officials of this Service on the Internet site or by other technological means available for this purpose by the foreign tax administration, without the need for a prior mutual agreement procedure.
Therefore, in the merit of complementing and harmonizing the tax regulations on the matter addressed, Chapter IV of Circular No. 7 of 2018, the following is added:
“In cases of income or amounts regulated by a tax treaty in force to avoid international double taxation, not existing a formal agreement with the foreign Tax Administration to validate the documents issued by it, such documents shall not be required to be legalized or apostilled as soon as possible for the officials of this Service to verify the authenticity of such documents on the Internet site of the corresponding foreign Tax Administration or by other technological means provided by it for such purpose.”
In conclusion, by means of Circular No. 47 of 2021, the Internal Revenue Service provides for the modification of the instructions related to the application of the Hague Convention that abolishes the requirement of legalization of foreign public documents or also known as the Apostille Convention.