LIFO is not allowed. Inventory valuation in Chile is at replacement cost, including only direct labor and raw materials and excluding overhead PPE are valued at cost plus price-level restatements. Separate and consolidate statements are required for public corporations. Other nonmonetary assets are restated in accordance with the consumer price index. For accounting purposes, companies may use a different financial year-end, but in practice they seldom do, since the calendar year must be used for tax purposes.
All accounts are on an annual basis, and income is recorded on the accrual basis of accounting.
The same tax is applicable to imports. Intercompany Dividends Dividends received from Chilean corporations are exempt from the basic tax Foreign Income Resident corporations are subject to taxes on their worldwide income. In general, foreign income and dividends received by a domestic corporation are subject to Chilean taxation in the financial year when accrued or received. A tax credit for taxes paid abroad is granted, subject to the regulations of the Income Tax Law. Branches of foreign corporations are taxed on their income without regard to the results of the head office.