- A national Register of Beneficial Ownership which would be maintained by the Chilean IRS is established.
- It will contain information on beneficial owners of legal entities, investment funds, and other entities with no legal personality.
- The information will be kept by the SII for a period of at least 10 years.
- A beneficial owner is defined as an individual, whether Chilean or foreign, with or without tax residence in Chile, who falls under any of the following tests:
- To own, directly or indirectly, through companies or other entities, an interest equal to or higher than 10% of the stock, contribution, right to profits or have voting or veto rights in the aforementioned entities, incorporated or domiciled in Chile, or with any type of permanent establishment in Chile.
- May elect or have elected, directly or indirectly, the majority of the directors or managers of such legal entities, investment funds, or entities incorporated or domiciled in Chile, or with any type of permanent establishment in Chile.
- Exercise effective control over legal entities, investment funds or entities incorporated or domiciled in Chile, or with any type of permanent establishment in Chile.
- The parties required to report are:
- The legal entities themselves, investment funds or entities incorporated or domiciled in Chile, or with any type of permanent establishment in Chile, provided that they are taxpayers of any tax under Income Tax Law, even if they were exempt from such taxes.
- Beneficial owners itself (individuals), when required by the Chilean IRS.
- The information must be submitted on an annual basis through a sworn statement to be filed in March, with respect to the persons who are beneficial owners as of December 31 of the previous year. In addition, any change in the ownership or in the beneficial owners must be reported within 60 days from the date the obligor became aware of it.
- Regarding the information to be reported, required parties must provide the Chilean IRS with the following information on the beneficial owners: (i) name; (ii) date of birth; (iii) tax ID or identification card; (iv) nationality; (v) domicile; (vi) country of residence; (vii) background of the entity of which they are beneficial owners; and (viii) form and date of compliance with the requirement to be considered beneficial owners.
- State agencies, within the bounds of their functions and powers, shall have full and timely access to the registry.
- The information on the name and identity card or identification will be publicly available only with respect to those beneficial owners that receive subsidies from the State or contract with the State.
- A wide range of powers is established for the Chilean IRS to enforce the purpose of the registry and exercise its functions.
- A regulation issued by the Ministry of Finance will regulate the procedure under which the information shall be provided to the Chilean IRS.
- Penalties are established in case of not timely or complete compliance, which depend on the type of non-compliance, repetition, and qualification of the obligor, ranging from 1 UTM (US$ 60 approx.) to 1 UTA (US$700 approx.), up to 40 UTA (US$ 29,000 approx.), for each individual not informed, plus fines for repetition, amounting up to 100 UTA (US$ 60,000 approx..). In addition, a penal sanction of minimum to medium term imprisonment is established in the case of false or substantially incomplete information.
