Companies that, as of the end of commercial year 2025, have a positive balance in the Fondo de Utilidades Tributables («FUR») and/or in the Saldo Total de Utilidades Tributables («STUT») may choose to apply a 10% sole substitute tax in lieu of final taxes, without the right to the credits associated with such amounts.
The taxpayer shall not be entitled to use the Corporate Income Tax credits associated with the amounts subject to this regime, which shall be deemed extinguished for all legal purposes.
This option may be exercised within 8 months from the publication of the law, with respect to the balances determined as of December 31, 2025 or 2026, as applicable. The option shall be deemed exercised upon simultaneous filing and payment through a form to be established by the Chilean IRS by resolution.
The amounts effectively taxed may be withdrawn, remitted or distributed without being subject to the allocation order established under the Income Tax Law.
For purpose of determining the balance eligible for the substitute tax, the balance of the respective register (FUR or STUT) as of December 31, 2025 shall be considered, corresponding to income subject to final taxes, less any allocations required to be made to such register during tax year 2026 or 2027, duly adjusted for CPI variation. In case of the STUT, the tax shall apply to the lesser of (i) the balance of the STUT register and (ii) the balance recorded on the same date in the RAI register, in each case net of transactions for the fiscal year required to be allocated to such registers.
The amounts subject to the substitute tax must be deducted from the corresponding register (FUR or STUT). Likewise, the corresponding Corporate Income Tax credit must be deducted from the associated credit control, which amount shall be deemed extinguished.
The tax paid, as well as expenses incurred, may not be deducted as an expense.
Companies that, at the end of commercial year 2025 or 2026, maintain excess withdrawals from the Fondo de Utilidades Tributables («FUT») pending allocation to the corporate income registers, may elect to apply a 10% sole substitute tax in lieu of final taxes on all or part of such balance, without the right to the credits recorded in the SAC register.
The option may be exercised within 8 months from the publication of the law, through simultaneous filing and payment via the form to be established by the Chilean IRS.
For purpose of determine the excess withdrawal balance eligible for the substitute tax, the excess withdrawal amount as of December 2025 or 2026, as applicable, shall be considered, less the allocations that must be made to the corporate income registers during tax year 2026 or 2027, adjusted for CPI variation.
The amounts subject to the substitute tax must be deducted from the excess withdrawal register maintained by the taxpayer.
If applicable, the Corporate Income Tax credit to which the taxpayer would have been entitled had the option not been exercised shall be deducted from the SAC register recorded as of December 31, 2025 or 2026, and shall be deemed extinguished for all legal purposes.
This tax, as well as expenses incurred for its application, may not be deducted as an expense.
The information contained in this publication was prepared by Carey y Cía. Ltda. for educational and informational purposes only and does not constitute legal advice.
