Chile

Taxable period

The tax year coincides with the calendar year.

Tax returns

The tax system is one of self-assessment by the taxpayer, with occasional auditing by the tax authorities. Annual tax returns must be filed with the Chilean IRS before 30 April of each year with respect to the operations of the previous calendar year.

Note that there are many other sworn statements with different deadlines, from March until June of each year.

Payment of tax

Taxes are payable when the annual tax return is submitted in April of each year. Taxpayers, in general, are subject to monthly advance payments on account of their annual income taxes. The difference between the advance payments and the final tax bill is payable in cash at the time the tax return is filed. If prepayments exceed the final tax bill, the excess is reimbursed by the Treasury.

Tax audit process

Generally, the Chilean tax system is based on self-assessment; however, many large businesses are under continuous audit by the Chilean IRS. Businesses and individuals are also generally subject to audit on a random basis.

Tax anonymous informant

Law No. 21,713 introduced the figure of the anonymous informant, guaranteeing the confidentiality of their identity and establishing the standards to be considered as such, including penalties (including criminal charges) for false or malicious reports. If the report is effective and successful, the informant may receive 10% of the fine applied to the respective offender.

It is established that the status of anonymous informant will be lost if anonymity is waived or if the report is publicized.

To access the financial reward, which amounts to 10% of the defrauded taxes, the amount of the offense must exceed 100 UTA.

Statute of limitations

As a general rule, the statute of limitations is three years. However, it can be extended to six years if no tax return was filed or if the tax return was maliciously false.

Topics of focus for tax authorities

Currently the tax authority is focused on tax compliance. Specifically, with the implementation of the amends made by Law No. 21,713 of 2024, the Internal Revenue Service (SII) was provided with new tools to combat informality, tax evasion, avoidance, and organized crime.

Self-Reporting of tax discrepancies

According to Law No. 21,713, taxpayers are given the option to self-report discrepancies in taxes that may constitute tax crimes, along with the requirements for doing so:

• Submit a proposal for the tax returns to be corrected, which can include only the three years prior to the request.
• Not be under an audit procedure for the same taxes.
• Not have been convicted of tax crimes or subject to fines if opting not to file a complaint.
• Not have self-reported previously.

In these cases, the taxpayer will not be subject to a complaint or legal action, and such discrepancies will not be eligible for forgiveness of interest and penalties. However, they may enter into a payment agreement with the Treasury Service.

General Anti-Avoidance Rule (GAAR) provisions

Law No. 21,713 modify several articles of the Tax Code in this area, ensuring that the General Anti-Avoidance Rule (GAAR) will undergo both clarity and coherence adjustments, as well as substantive changes. The following are the main changes:

• A new scenario is introduced for the configuration of simulation or abuse: obtaining refunds or accessing a benefit or a special tax regime. Additionally, in cases of tax avoidance involving a series of acts or legal transactions, it is established that the GAAR may be applied even if one or more of those acts, considered individually, are subject to a specific anti-avoidance rule.
• A new procedure is established, which, while still judicial, includes a stage before the Executive Committee. This new body is responsible, among other functions, for recommending whether or not to apply the GAAR.
• If an act is deemed to be tax avoidance, the report must be submitted to the Executive Committee, which will have 15 days to issue its opinion. Subsequently, the Director may decide whether or not to file the claim with the competent Tax and Customs Court. From the filing of the claim until the date of the ruling, the statute of limitations period will be suspended.

Finally, an increase in penalties is implemented for cases where fees exceeding 100 Monthly Tax Units (UTM) are agreed upon, with a maximum cap of 250 UTM, as stipulated by the rule.