It is important to note that taxpayers who maliciously include in their tax returns assets or income of third parties will be penalized.
In the context of the Tax Compliance Bill, a new “window” for the repatriation of capital is contemplated, similar to what happened with the 2014 tax reform.
On that occasion, the so-called “super eight” allowed taxpayers to declare assets or income abroad, paying a special rate of 8%.
Thus, the current bill contemplates a new window to repatriate capital abroad at a special rate of 12%, within a period of one year.
In this sense, the bill states that those taxpayers domiciled, resident, established or incorporated in Chile prior to January 1, 2024, whose assets and income are abroad, when having been subject to taxes in the country, have not been timely declared and/or taxed with the corresponding taxes in Chile, will be able to avail themselves of this measure.
It is important to point out that the fact of making this declaration does not oblige the declared assets or income to enter the country.
Regarding the assets or income that may be declared, the project indicates the following:
- All kinds of movable and immovable property, tangible and intangible, such as shares or rights in companies incorporated abroad. As well as all kinds of financial instruments or securities that can be paid in foreign currency.
- Foreign currency.
- Income derived from the aforementioned assets.
On the other hand, only the assets or rights that the taxpayer proves to have acquired prior to january 1, 2024 and the income derived from such assets until december 31, 2023 may be subject to this declaration.
An inventory and detailed description of all the assets and income that are the object of the declaration must be submitted together with the declaration.
Regarding the valuation of the declared assets and income, the following rules must be applied:
- Shares, rights or any title to companies or entities incorporated abroad, bonds and other debt securities, securities, instruments and any asset traded abroad in a market regulated by public entities.
- Financial investments composed of different instruments and contracts.
- When the above rules cannot be applied, they must be stated at their commercial or market value, based on a valuation report prepared by independent auditors.
In the event that the value of the assets or the amount of the income is not proven, the SII may appraise them in accordance with Article 64 of the Tax Code.
Regarding the procedure, the bill states that once the tax return has been filed, the SII must remit a single tax in lieu of the other taxes that may affect the declared assets and income within 5 business days. Payment must be made within 10 business days following the notification of the remittance.
In turn, the SII will have a term of 12 months to audit compliance with the requirements to make the declaration. Upon expiration of the aforementioned term, it shall be presumed by law that the tax return and the background information on which it is based have been filed in accordance with the law.
However, taxpayers who maliciously include in their return assets or income of third parties shall be punished with a fine of 300% of the value of the assets or income in question and with a maximum term of imprisonment.
In addition, the filing of the return authorizes the SII, the Financial Analysis Unit and any other State institution to request specific information from the banks on the income or assets included in the return.
Finally, for the purposes of article 97 N° 4 of the Tax Code (maliciously incomplete or false declarations that may induce the liquidation of a lower tax), the failure to comply with this special regime for the repatriation of capital will be considered an aggravating circumstance for the application of the penalty.
For more information on these topics you can contact our Tax team:
Rodrigo Albagli | Partner | ralbagli@az.cl
Álvaro Rosenblut | Partner | arosenblut@az.cl
David Ancelovici | Director Tax Group | dancelovici@az.cl
Pablo Trucco | Senior Associate | ptrucco@az.cl
Elisabet Pinto | Associate | epinto@az.cl
Valentina Herrera | Associate | vherrera@az.cl
