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New tax measures to mitigate the impact of the health emergency on people and companies are published

April 28, 2021

On April 24, Supreme Decree No. 611 of the Ministry of Finance was published, which authorizes some authorities to extend and establish certain tax measures to mitigate the impact of the health emergency caused by COVID-19 on people and companies.

In particular, the new decree establishes the following faculties to Mayors, the Tax Administration (Servicio de Impuestos Internos or “SII”), and the General Treasury of the Republic (Tesorería General de la República or “TGR”):

Mayors

  • Municipal License Tax
    • Extend for up to three months the term for the payment of the half-yearly or annual installments, without fines and interest.
    • Authorize payment in up to six consecutive monthly installments, without fines and interest.

    Both measures are established with respect to: (1) payments corresponding to July 2021 – June 2022 and (2) companies whose annual sales in 2020 do not exceed UF 100,000 (USD 4,2MM approximately):

  • Liquor License
    • Extend the deadline to pay licenses due on July 31, 2021, until January 1st, 2022, in six consecutive monthly installments, without fines and interest.
    • Forgive interest and fines corresponding to the payment of the liquor license due on January 31, 2021, whose half-yearly value has not been paid until December 31, 2021.

Servicio de Impuestos Internos

Real estate tax

  • Extend the payment of the four quarterly installments of 2021 to 2022. This, in case of real state with: (1) a housing destination and fiscal appraisal not exceeding UF 5,000 (USD 210,000 approximately), and (2) natural person owners.
  • Extend the payment of the first two installments of 2021 to 2022. This, in case of real estate owned by companies whose annual sales in 2020 do not exceed UF 100,000 (USD 4,2MM approximately).

Tesorería General de la República and Servicio de Impuestos Internos

  • Forgive interest and fines regarding tax payment due as of March 1st, 2021. The percentage of the forgiveness varies if the taxpayer pays the whole taxes due (90%) or subscribes a payment agreement (70%).
  • Grant greater facility for the subscription of payment agreements with the TGR, regarding taxes overdue as of March 1st, 2021.

The content of Supreme Decree No. 611 can be reviewed here.