Pro Pyme taxpayers can close their activities in a faster and more efficient way.
Law 21.713 on Compliance with Tax Obligations, incorporated a new simplified procedure for Pro Pyme or Pro Pyme Transparente taxpayers, speeding up the closing of economic activities and establishing new joint and several responsibilities.
In April of this year, the Internal Revenue Service (SII) published Circular No. 32, which provides instructions on the amendments to Article 69 of the Tax Code. The provisions came into effect on November 1, 2024.
The most relevant aspects are detailed below:
- Who can avail themselves of the simplified procedure?
The procedure applies to:
- Legal entities (not individuals) taxed under the Pro Pyme General or Pro Pyme Transparente regime, pursuant to letter D of article 14 of the Income Tax Law.
2. Requirements for the simplified procedure.
Taxpayers must:
- Submit the notice of end of business through the electronic tax folder, including:
- Final balance sheet of end of business.
- Background information to determine the corresponding taxes.
III. Documents proving the cessation of activities.
- Accompany a declaration in a public deed where the partners, shareholders or co-owners jointly and severally undertake to answer for the taxes owed by the company.
3. Deadlines for tax remittance
- General deadline: The SII will issue the tax draft within one month from the filing of the notice, certifying the term of draft after verifying the payment. Example: A notice filed on January 5 implies a draft before February 6, with certification after payment (e.g., February 10).
- Exceptional power: The SII may remit tax differences or initiate audits within 6 months from the request, extendable by 3 months in the following cases:
- There are new antecedents that modify the taxes.
- The taxpayer provides additional information.
III. Maliciously false declarations are detected. In these cases, the jointly and severally liable parties (partners, shareholders or co-owners) will be notified.
4. Implications of joint and several liability
The partners, shareholders or co-owners are jointly and severally liable for the taxes owed, allowing the SII to demand full payment from any of them without division of the debt.
5. Benefits of the procedure
- Agility: Reduces the processing time from 6 months (general procedure) to only one month.
- Simplicity: Facilitates closing for small and medium-sized companies, while maintaining accessible requirements.
What are the concrete implications of this measure?
Pro Pyme taxpayers can close their activities in a faster and more efficient way, reducing the administrative burden and giving certainty to the closing of the company.
However, joint and several liability and the possibility of subsequent audits require a rigorous review of the requirements and adequate documentary preparation.
In this context, we provide the following recommendations:
- Review the tax situation and tax compliance before starting the process.
- Prepare the final balance sheet and tax assessments at the date of the end of business.
- Manage the public deed of joint and several liability.
- Finally, it is essential to keep updated records to respond to possible audits by the SII.
You can review the complete Circular N° 32 here.
For more information please contact our Tax team:
Rodrigo Albagli | Partner | ralbagli@az.cl
Álvaro Rosenblut | Partner | arosenblut@az.cl
Andrea Bobadilla | Director Tax Group | abobadilla@az.cl
Javiera Melo | Associate | jmelo@az.cl
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