Chile

The Tax Compliance Obligation Bill - Law No. 21,713

On 24 October 2024, Law No. 21,713 was published in the Official Gazette. This law establishes regulations to ensure compliance with tax obligations within the framework of the Pact for Economic Growth, Social Progress, and Fiscal Responsibility.

This law amends various legal frameworks with the aim of strengthening control and oversight mechanisms for tax collection by the National Customs Service (SNA) and the Internal Revenue Service (SII).

Among many other topics, the legal text introduces amendments to the governance of the SII, the flexibility of bank secrecy lifting procedures, adjustments to the application of the General Anti-Avoidance Rule (GAAR), the creation of an anonymous whistleblower figure for tax investigations, a transitory capital repatriation regime, and benefits for small and medium enterprises (SMEs) with outstanding debts.

It also includes tax regulation changes aimed at curbing non-compliance and reducing tax evasion. These measures include adjustments to the GAAR, enhanced oversight of business groups, value-added tax (VAT) on the purchase of imported goods through digital platforms, and reporting requirements for the number of transfers, among others.

Additionally, initiatives related to the new governance structure of the SII are introduced, including the creation of a Tax Council. The Council’s main functions will be to provide opinions on the institution’s circular letters subject to mandatory public consultation procedures and the Tax Compliance Management Plan, among other tasks. An Executive Committee is also established, composed of the Director, who will chair the committee, and the Subdirectors of Regulations, Auditing, and Legal Affairs, who will evaluate whether the SII should initiate an investigation under the anti-avoidance rule.

The Tax Compliance Law also establishes multijurisdictional procedures and a simplified judicial process for lifting bank secrecy.

Law No. 21,755 - Regulatory Simplification and Promotion of Economic Activity

On 11 July 2025, Law No. 21,755, titled 'Regulatory Simplification and Promotion of Economic Activity', was published in the Official Gazette. This law incorporates amendments to various regulations, such as the Customs Ordinance, Tax Code, Income Tax Law (ITL), and Municipal Licences, among others.

Although the areas amended are broad, the most notable modifications include the following:

Tax Code

• An obligation to report information on prepaid cards is introduced.
• The penalty procedure for tax avoidance is modified:
• Fines are requested alongside the court requisition and are only enforceable when the judgement is final.
• Statute of limitations for fine collection is three years from when the judgement is final.

Income tax relief for SMEs

• The First Category Tax (FCT) rate for the Pro-PYME (SMEs) Regime is temporarily reduced to 12.5% for fiscal years 2025, 2026, and 2027. For 2028, the rate will be 15%, provided there is a gradual increase in pension contribution (1%, 3.5%, 4.25%, and 5%, respectively).
• Monthly provisional payments (PPMs) in the same regime are halved during fiscal years 2025, 2026, and 2027. The reduction in the PPM rate will apply to the declaration and payment due the month after the publication of this law in the Official Gazette.

Customs

• Deadlines for submitting appeals are clarified as business days.

Municipal Licences

• The validity of provisional patents that expired during the COVID-19 health alert process is extended.
• Closures decreed solely due to the lack of a definitive patent are revoked automatically by law, without the need for an administrative act.

• There is a new process to request an additional one-year extension for provisional patents.

Other amendments of interest

• Law No. 21,561 (40 hours): Clarification on the distribution of hour reduction in the workweek, respecting proportional decrease.
• Law No. 20,241 (R&D): The deadline to qualify for incentives is extended until 31 December 2035.