Chile: “Recovery and early assistance plan” tax relief measures; VAT developments
A series of tax relief measures and exemptions in response to situation caused by fires
A series of tax relief measures and exemptions in response to situation caused by fires
In response to the situation caused by the fires that have affected the central-southern area of Chile, the government has launched a "Recovery and Early Assistance Plan." This program contains a package of economic, social and tax measures aimed at helping and providing immediate solutions to the people affected by this catastrophe.
A series of relief measures and exemptions for micro, small- and medium-sized companies will be provided by the Ministry of Finance, the Internal Revenue Service and the General Treasury of the Republic, including the following:
- Waiver of fines and interest and facilities for unpaid taxes
- Extension of the period for filing value added tax (VAT) and other monthly taxes
- Re-assessment of affected real estate value in the regions of Ñuble, Biobío and La Araucanía
- Extension of payment of the first and second installments of land tax in affected areas
- Streamlining of donation processes in affected areas
- Special procedure for reporting loss of inventory, accounting books and other tax documents
- Suspension of automatic collection from taxpayers in zones declared in a state of exception sanctioned for specific tax infractions
- Waiver of payment of taxes for services rendered by taxpayers domiciled abroad if they are directly related to fire fighting
- Extension of the term so that taxpayers with advanced collection processes can regularize their situation and avoid auctions of their assets for non-payment of their tax obligations
- Exemption from customs duties to speed up the process of importing products and materials for the support of affected families
Read a February 2023 report (Spanish and English) [PDF 1 MB] prepared by the KPMG member firm in Chile
Other topics discussed in this report include:
- Reinstatement of the tax treatment of financial leasing contracts
- Obligation of restitution of corporate income tax credit in case of dividends paid to a transparent entity
- Consultation on tax treatment of remote technical assistance service to customers
- Tax regulations applicable to transactions carried out by the Central Bank of Chile
- Treatment of adjustments and exchange rate differences in the calculation of the VAT tax credit proportionality
- VAT in professional partnerships
- VAT on services provided by a cemetery
- Donation of cryptocurrencies and tax benefits
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