The distribution of dividends in the Chilean country is usually approached as a procedure after the close of the financial year, but in reality it is a decision that must be planned in advance. The way in which profits are distributed can have a direct impact on the taxation of the company and its partners.
At UR Global we help companies manage this process judiciously, ensuring that each decision is aligned with their structure and objectives, especially in international environments where the implications can be more complex.
What does this service include?
The dividend distribution advisory service in Chile covers all the necessary phases to carry out the distribution of profits correctly and efficiently. We start from an analysis of the company’s financial situation, reviewing the results, reserves and possible legal limitations for distribution.
From this analysis, we define the best distribution strategy, taking into account both local regulations and the tax impact for partners, especially in cases of international structures.
We also accompany in the formalization of the process, ensuring that the documentation is correctly prepared and that the distribution is carried out in accordance with legal requirements, avoiding future incidents or contingencies.
Methodology
Our methodology is based on a preventive approach. Before executing the dividend distribution in Chile, we analyze the complete context of the company to identify the most appropriate option in each case.
This analysis includes both the current situation and future plans, which allows us to make decisions that are not only efficient in the short term, but are also aligned with the strategy for the future. medium and long term.
In addition, we work in coordination with the tax and financial areas, ensuring that the distribution of dividends is integrated into a coherent global planning and without unexpected impacts.
Who is the dividend distribution service aimed at in Chile?
This service is aimed at companies with a presence in Chile that need to manage the distribution of dividends in an orderly and efficient manner, especially those that have foreign partners or are part of international groups.
It is also especially useful for companies that are reviewing their profit distribution policy and seek to optimize their taxation without taking unnecessary risks.
Similarly, it is relevant for companies that, after the close of the year, need to ensure that the distribution process is carried out correctly and in accordance with current regulations.
Complementary services
Accounting advisory
At UR Global, we have a well-established local team and our own offices in 11 countries—Spain, Mexico, Colombia, Peru, Ecuador, Brazil, Portugal, Chile, Morocco, the United States, and Italy—specialising in accounting advisory services.
As part of managing subsidiaries in each country, we handle all required accounting and financial processes. This ensures that headquarters maintains a clear overview and fully understands the financial statements and specific accounting nuances of each location.
To achieve this, our team includes specialists in tax and accounting advisory and management. They possess expertise in both local regulations and the treaties Spain holds with these various countries, enabling them to manage the company’s monthly accounting and related strategies.
International taxation
We support groups and companies with international operations in safeguarding the tax position of their cross-border transactions and intragroup flows. Our approach combines a technical analysis of the applicable regulations, the interpretation of double taxation treaties and compliance with documentation requirements (transfer pricing and other international obligations).
Single Register of Tenderers (RUP)
One of the requirements for taking part in public tendering processes is the Single Register of Tenderers – RUP, a legally established register maintained by chambers of commerce, in which national or foreign natural or legal persons domiciled or with a branch in Colombia who wish to enter into contracts with state entities for the execution of works, supply of goods or provision of services must be enrolled. This register contains information relating to the experience, legal capacity, financial capacity, organisational capacity and classification of the tenderer. This procedure has a maximum response time of 15 working days once the registration application has been submitted to the commercial register.
It is important to bear in mind that the RUP must be renewed annually; renewal must be carried out from the first (1st) of January and no later than the fifth (5th) working day of April each year, failing which the initial registration will be lost.
Tax and accounting review to identify potential tax credits
Brazil’s complex tax system can lead to situations in which a company accumulates tax credits, whether as a result of its transactions or negative balances. In such cases, the company may be entitled to use those tax credits.
At UR Global, we analyse the company’s accounting and tax position to determine whether such credits exist. Once identified and confirmed, UR Global handles their recovery, management and offsetting.
