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Resolution Ex. N° 86 establishes the obligation to report all properties (including those receiving DFL-2 benefits) earning taxpayers rental income regardless of their tax valuation amount and acquisition date if the lease contract is for one or more months within the same calendar year. If it is referred to as a “leasing contract,” such contracts are excluded from the reporting requirement on Form N° 1835.
Form N° 1835 must be sent to the Chilean IRS, through the Chilean IRS website, by March 25 of each year regarding agricultural and/or non-agricultural real estate rented during the previous year.
Who Will Be Required to File Form N° 1835?
i. Property brokers, intermediaries, and agents (mandatarios) of lessors or lessees, who have been involved in the conclusion or administration of a lease contract; and,
ii. The lessees who, without the involvement of property brokers, intermediaries, or agents, comply with any of the parameters indicated by the Chilean IRS, including Corporate Income Tax taxpayers, professional partnerships, and those entities, whatever their condition, that lease property for the development of one or more activities included in Article 20 of the Chilean Income Tax Law (Ley sobre Impuesto a la Renta).
Penalties for Non-Compliance
Finally, the delay or omission in the filing or its incomplete presentation, will be sanctioned with a penalty of 1 Monthly Tax Unit (UTM) to 1 Annual Tax Unit (UTA).2
