Fischer y Cía. has created this website in order to support understanding and debate on these changes to the Chilean tax system. This is general information. Therefore, it is not necessarily complete or exact. It is also continually updated and corrected. We invite you to collaborate with this initiative by sending comments or documentation to


Amendments January 4th and 10, 2023 

January 16, 2023

On January 4th and 10th of this year, the Executive presented new amendments to the Tax Reform bill, which was introduced on July 7th, 2022 (“the Reform”). Among these amendments, the following topics stand out: 

I. Income Tax Law: 

  1. Article 14, subparagraph G, and 56: clarification is provided on the tax treatment of cooperatives and the distributions made by them to their members. As long as the distributions do not exceed 50 Tax Units (UTA) within a commercial year, the current tax treatment will be maintained, meaning there will be a right to a credit for First Category Tax. In case the distributions exceed 50 UTA, the excess will be subject to the general rules of the Reform, therefore there will be no right to a credit for First Category Tax. 
  1. Article 31: it is established that payments made or owed to residents of tax havens are not deductible as expenses, and it is indicated that the deferred tax on final taxes will constitute a necessary expense. 
  1. Article 55 quinquies: this article, introduced by the Reform, adds a tax benefit allowing the deduction of certain expenses from the taxable base of the Global Complementary Tax (“IGC”). These expenses generally consist of services related to the care of children under two years of age and individuals with severe dependence. The amendments introduce a third case: services associated with the care of individuals over 80 years of age. 
  1. Article 55 sexies: this article, introduced by the Reform, establishes limits on the tax-exempt income for IGC, credits against this tax, or deductions against its base. The amendments modify this limit as follows: a) Deductible expenses: the limit changes from 23 UTA to the higher of either 23 UTA or 5% of the IGC taxable base. b) Tax-exempt income and credits against its base: the limit changes from 2.3 UTA or 50% of the IGC to the higher of either 2.3 UTA or 35% of the IGC taxable base. However, the Reform establishes that the First Category Tax credit set forth in number 3 of Article 56 and the tax-exempt nature of capital income tax contained in Article 63 bis are not subject to these limits. The amendments add the credits mentioned in number 3 of Article 54 to the aforementioned exceptions. 

II. Value Added Tax (VAT) Law: 

  1. Article 36: the amendments establish the method for determining the refund amount of VAT borne by exporters. This will be calculated by applying a percentage to the total input tax credit, which represents the value of exports eligible for tax recovery in relation to the total sales of goods and services, considering the last twelve consecutive tax periods. Furthermore, new requirements for refunds are incorporated, namely: a) If the recovered tax exceeds the FOB value of the goods or services exported in the period, the taxpayer must demonstrate that, within a 24-month period from the last shipment or acceptance of the service export declaration, they have exported at least twice the amount of the refunded tax, based on the FOB value of the goods or services. Failure to meet this requirement will result in a proportional reimbursement of the amounts refunded, considering them as input tax credit for the period of reimbursement. b) The provisions in letter a) also apply to exporters who have ceased operations without having exported at least the specified quantity, unless it can be proven that the non-compliance was due to force majeure, unforeseen circumstances, or a liquidation process. 

III. Transitory Provisions of the Income Tax Law: 

  1. The Reform contemplated the entry into force of various provisions starting in 2023, which are postponed to 2024 through the amendments. These provisions include the following: Articles 17 No. 8, 31 No. 2, 32, letters E, F, G, and H of Article 41, 43, 52, 52 bis, 55 bis, 55 ter, and 59 bis, and the additions of Articles 55 quáter, 55 quinquies, and 55 sexies
  1. The Reform established a First Category Tax rate of 15% for companies subject to the SME regime, regarding income received or accrued during the 2023 fiscal year. The amendments reduced this tax by 2%, resulting in a rate of 13%. 

IV. Transitory Provisions of the VAT Law: The amendments to Article 36 will come into effect three months after the enactment of the Supreme Decree that replaces Supreme Decree No. 348 of 1975. 

On our website, in the Comparative section, you will find the comparisons that include these latest amendments.