Capital repatriation (10%)
- A voluntary and extraordinary system is proposed for declaring assets and income located abroad, that having been obliged to pay taxes in the country, have not been timely declared and thus have not complied with the relevant taxes in Chile.
- Through this system all types of property (i.e. movable and real estate property, tangible and intangible assets), can be declared.
- Only the assets or rights that the taxpayer irrefutably proves to have acquired (or become a beneficiary of) prior to January 1, 2018, and the income received or accrued derived from such assets until December 31, 2018, may qualify for this system.
- Once the declaration is filed, the SII will impose a sole and substitute tax with a rate of 10% on the value of the assets and income declared.
Sole tax on the outstanding balance of retained profits.
- The taxpayers subject to the Corporate Tax that as of the end of the 2018 business year maintain a balance of retained taxable profits generated before January 1st, 2017, can choose to pay a sole and substitute tax at a fixed rate of 30%, which will replace the corresponding final taxes (“ Substitute Tax”).
- With the declaration and payment of the Substitute Tax, the taxation with income tax of the aforementioned profits is understood as fully complied with.
- The Substitute Tax has a preference for purposes of imputation with respect to the imputation rules established by the ITL. Thus, the profits subject to such special tax may be withdrawn at any time without triggering any further tax payments, regardless of the profits retained in the company.
- The Corporate Tax paid over the relevant retained taxable profits is fully creditable against the Substitute Tax.