- Taxpayers domiciled or resident in Chile prior to January 1, 2023, may voluntarily declare, subject to a sole and substitute tax at a rate of 12%, their assets and income abroad, when having been subject to taxes in Chile, they were not timely declared or taxed. Real estate is eligible for this program.
Such taxpayers may also declare assets and income located in Chile if they are beneficiaries of such through foreign companies, entities, trusts, fiduciary arrangements, or agents. - For these purposes, the assets and income declared shall be valued by the respective taxpayer according to market standards, in accordance with the rules set forth in the bill. Such value, once the tax has been paid, will constitute the tax cost of declared assets and/or income.
This tax cannot be used as a credit against other taxes nor deducted as an expense. - Only assets or rights that the taxpayer reliably proves to have acquired prior to January 1, 2023, and the income derived from such assets until December 31, 2023, will be eligible for this benefit, unless they are located in countries or jurisdictions classified as high-risk or non-cooperative in terms of money laundering and terrorist financing by the Financial Action Task Force.
It is not required that the declared assets and/or income be repatriated to Chile. - With the declaration and payment of the tax and provided the requirements are met, the taxpayer’s good faith in relation to the omission or non-compliance with the respective obligations will be presumed by law.
The Chilean IRS will have a period of 12 months to audit compliance of the requirements. After this period: (i) it will be presumed by law that the taxpayer’s declaration and the supporting information have been submitted in accordance with the bill; (ii) the Chilean IRS powers to review and audit the respective declaration will expire ipso iure; and (iii) the respective civil, criminal, or administrative liabilities will be extinguished ipso iure. - Taxpayers who avail themselves of this benefit must regularize, when applicable, the compliance with foreign exchange regulations set forth by the Central Bank of Chile.
- Failure to submit the declaration will be considered as an aggravating circumstance in the determination of the respective penalties.
Effective date: The declaration may only be submitted as from the first day of the month following the publication of the bill as law and until November 30 of the same year.
- An option is introduced for taxpayers to settle pending judicial proceedings related to tax claims. This option offers a full waiver of interest and penalties if the taxpayer acknowledges the adjusted tax debt.
- This option does not apply to proceedings initiated after January 1, 2024, nor to those related to criminal tax cases.
Effective period: from the first day of the month following the publication of the law until November 30 of the same year.
- The Treasury will be required to provide facilities for the payment of taxes or administrative fines due as of December 31, 2023.
- In this regard, taxpayers may access payment agreements for up to 48 monthly installments, with a full waiver of all interest and late penalties.
Effective period: From the date of the law’s publication until October 31, 2024.
