Royalties In Chile – Back To The Basics!

Trademarks, trade names, brand names, copyright rights, technical know-how, patents, and industrial designs, to name a few, are all valuable intangible properties that are frequently transferred (or licensed) from one related entity to another related entity. This is particularly important for foreign companies who are operating in Chile since their intellectual property in most cases is what distinguishes their product, services, or company from the competition.

Understanding how to utilize the tax benefits of your IP is crucial to ensure your company is tax efficient. It will often be one of many strategies you may put in place between the parent and subsidiary companies to assist with your tax planning. A part of that process is understanding the double taxation agreements that are currently in place.