- The funds keep not being subject to corporate income tax.
- Investors taxation
- Taxpayers with domicile or residence in Chile
- Individuals: profits distributed by the fund are subject to the new capital income tax (22% rate on amounts distributed by the fund, without any tax credit).
- Subject to corporate income tax (mainly companies): affected by corporate income tax (to the extent that they have not previously paid such tax).
- Taxpayers without domicile or residence in Chile
- Profit distribution:
- The single 10% tax is eliminated.
- Affected with the withholding tax or capital income tax (22% rate), depending on whether they are domiciled or resident in a country with which Chile has signed an agreement to avoid double taxation that is in force. This circumstance will determine whether they are subject to a total tax burden of 35% or 43%.
- Gains on the sale of fund quotas:
- The single 10% tax is eliminated.
- Affected with withholding tax.
- Profit distribution:
- Taxpayers with domicile or residence in Chile
- The Chilean IRS will be able to exercise its appraisal powers in the division and merger of funds.
- Will be subject to corporate income tax, according to the general regime.
- Funds that for at least 330 days within a year maintain 100% of the value of their assets in venture capital investments will continue not to be subject to corporate income tax. The Corporation for the promotion of production (CORFO) will certify compliance with this requirement.
- The distribution of profits from the fund, for taxpayers with or without domicile or residence in Chile, will be taxed in the same way as for contributors to public investment funds and mutual funds.
- Will be subject to the obligation to report annually to the Chilean IRS on investments abroad.
- January 1st, 2025.
- During business years 2023 and 2024, the single tax of 10% applicable to the distribution of profits and to gains on the sale of mutual and investment fund quotas, obtained by taxpayers with no domicile or residence in Chile, is replaced by the additional tax with the right to credit for first category tax.
- The funds that maintain accumulated taxable profits at the end of business years 2022, 2023 or 2024, may opt to pay a substitute tax for final taxes, at a rate of 32%, with a credit for the corporate income tax paid. The profits subject to the substitute tax must be recorded in the registry of exempt and non-taxable income (REX), and their distribution will be subject to the allocation order in force at the time.
