Proof of Address before the SII

Proof of address is a key procedure for companies seeking to establish themselves legally and operate within Chile’s tax framework.

What does proof of address consist of?

Proof of address is essential for any business, as it validates the location from which it will operate and issue tax documents. 

Este trámite es esencial no solo para cumplir con las regulaciones del Servicio de Impuestos Internos en Chile, sino también para realizar transacciones comerciales y recibir beneficios fiscales adecuados.

What is Proof of Address?

Proof of address is the process by which a company demonstrates to the Servicio de Impuestos Internos that it has a valid physical establishment. 

This may be a property that is owned, leased, or even granted by another business or individual.

Requirements to complete proof of address in Chile

To prove the address, it is generally required to submit documents that demonstrate authorized use of the property where the company’s activities will be carried out. 

We will classify the requirements to prove address into three sections:

Prove address if you own the property:

Si eres el propietario del inmueble donde se va a desarrollar la actividad principal de la empresa, debes presentar documentos que certifiquen la titularidad de la propiedad para acreditar el domicilio fiscal. Estos documentos pueden incluir:

• Current ownership certificate from the Conservador de Bienes Raíces, which verifies ownership.

• Original appraisal certificate in the taxpayer’s name, showing the tax value of the property.

• Purchase and sale deed, which confirms the property transaction.

• Purchase invoice for the property, issued by the construction company if the property is new.

• Letter from the construction company or real estate developer, confirming the sale and the ongoing title process.

Prove address if you lease the property:

If the place where your company carries out its activities is leased, it is essential to demonstrate the lease agreement through one of the following documents:

• Signed lease agreement, which must be in the company’s name; it will not be valid if it is in the name of any of the partners; the company must obligatorily be the lessee.

• Si se emiten documentos que permiten el crédito fiscal de IVA (como facturas), el contrato de arriendo debe estar firmado ante Notario o un Oficial del Registro Civil donde no haya notarios, actualmente el Servicio de Impuestos Internos también admite documentos firmados a través de Firma Electrónica Avanzada.

• Lease agreement with purchase option (leasing), if applicable, submitting the original document.
  
  

3. Assignment of Properties for Commercial Use

In cases where the property is assigned for commercial use, the assignee must submit:

• Written authorization before a notary: Document that confirms the assignment of the use of the property by the owner or lessee.

• Identification of the grantor: Identity document of the person granting the authorization, verified before a notary.

These requirements ensure that the property is properly registered and complies with the regulations for the exercise of commercial activities.

Requirements for Granting Lease Agreements to certify domicile before the SII in Chile

To certify domicile through a lease agreement in Chile, it must be granted by one of the following authorized parties:

• Property owners: Persons who legally own the property.

• Agents with sufficient power of attorney: Delegated by the owner to act on their behalf.

• Tenants authorized to sublease: They must also show the main lease agreement.

• Real estate brokers or representatives of real estate and/or construction companies: They must present an order or mandate from the owners, and their relationship must be verifiable through appropriate documentation.

• Representatives designated by a community or estate: They need to present documents that certify their position, authorized unanimously by the members involved.

It is important to note that any contract that includes clauses limiting the use of the property exclusively to non-commercial activities is not valid to certify tax domicile.

Who must certify domicile in Chile?

In Chile, most entities and individuals that carry out economic activities must certify their domicile before the Servicio de Impuestos Internos. 

This includes all companies, whether they operate as legal entities or individuals who issue invoices. 

However, there are significant exceptions for certifying domicile in Chile. 

Los profesionales que únicamente emiten Boletas de Honorarios según el Impuesto de Segunda Categoría de la Ley sobre Impuesto a la Renta, así como los organismos del Estado, están exentos de presentar antecedentes para acreditar su domicilio o el de sus sucursales. 

This measure simplifies the process for these groups and allows them to focus on their professional activities without the additional administrative burden of certifying a domicile.

Can I certify domicile at a home, house, or place of residence or work?

Yes, it is possible to certify your domicile at a home, house, or place of residence or work, if it has commercial and not residential land use.
Remember that you can process the change of land use of the property before the relevant municipality.

However, at this point we recommend using a virtual office.

A Virtual Office is especially useful for companies that seek to project a more professional image and do not have a commercial premises or property where they can carry out their operations.

Do I need to certify domicile every time I change domicile?

Yes, it is necessary to certify domicile every time your company changes location. 

Este procedimiento asegura que toda la información fiscal y legal de tu empresa esté actualizada, lo cual es crucial para recibir notificaciones y cumplir con las obligaciones tributarias correctamente.

Do I need to accredit domicile at each branch?

Sí, debes acreditar el domicilio para cada una de tus sucursales. Cada ubicación donde tu empresa realice operaciones o transacciones debe tener un domicilio acreditado ante el Servicio de Impuestos Internos para garantizar el cumplimiento de las normativas locales y facilitar la gestión de asuntos fiscales.

If I have a warehouse, do I need to accredit the domicile?

Yes, if you have a warehouse used within the scope of your company’s operations, you must also accredit its domicile. 

This is important not only to comply with tax regulations, but also to ensure that all facilities are properly registered and authorized for their respective functions.

Conclusions about domicile accreditation

Ensuring that your business complies with domicile accreditation is not only a legal requirement, but a crucial part of guaranteeing its operation and credibility. 

Domicile accreditation can be done easily online through the Internal Revenue Service page.

In the Online Services menu → Information Update

You can also access directly from the following link:
https://www.sii.cl/servicios_online/1125-.html

In that menu you will find that you can perform several operations:

• Update identification data

• Declare assets (individual entrepreneur)

• Update domicile

• Change/expand line of business or economic activity

• Add/remove branches

• Change email and/or mobile phone

• Email notification

• Report business reorganizations

• Certificates of start of activities and others

• Register contact data for high net worth advisors

You must follow the steps indicated by the SII page and upload the necessary documentation.

Una vez cargados todos los documentos, deberás esperar que el SII asigne a un agente a la revisión de los documentos, el agente puede requerir más información referente al domicilio o aprobar el domicilio tributario del mismo.

Debes tener presente que debe primar el sentido común al acreditar el domicilio, es decir, si la sociedad que pretende acreditar el domicilio es tiene por objeto la fabricación de materias primas, el domicilio debe ser apto para ejecutar esta actividad.

Por ejemplo, una oficina virtual, normalmente no se permite para acreditar actividades de compra – venta o actividades de comercialización. A menos que acredites que tienes una bodega donde almacenas la mercancía, o que acredites que es venta calzada, es decir, que lo que recibes como mercancía lo vendes al mismo tiempo. De esta forma no tienes un lugar físico para el almacenamiento de la mercancía.

On the other hand, if you have import activities, public attention, transportation, these are activities that are not compatible with a virtual domicile.

Transportation activities normally require having parking where motor vehicles are stored.

That is, to accredit the domicile of transportation companies, you will likewise need parking lease contracts where the vehicles will be kept.

Si quieres evitar el proceso de hacer la solicitud por tu cuenta, y así evitar enfrentar obstáculos presentados por el Servicio de Impuestos Internos, puedes contratar el Servicio de Acreditación de Domicilio con nosotros, Iberocapital.

With years of experience in the market, we have professionals who will help you navigate the complexities in the address accreditation process. 

Our experts can help you navigate the regulations and ensure your business is perfectly aligned with the requirements imposed by the Servicio de Impuestos Internos.