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Resolution Ex. N° 103 establishes the mechanism to report assets and income that taxpayers have held abroad, when, having been subject to taxes in the country, they have not been timely reported and/or taxed according to the corresponding taxes in Chile.
An income tax of 12 percent would be applicable only upon the income declared, not the value of the assets held abroad. Furthermore, Form N°1920 is just for informational purposes.
Relevant Dates
Form N° 1920 must be filed electronically with the Chilean IRS, through the Chilean IRS website, by November 30, 2024; however, it is important to note that the due date was extended until December 31, 2024, by the Senate.
The Chilean IRS will notify the taxpayer within five business days about the tax due, which the taxpayer will then have to pay within 10 business days after this notice is received from the Chilean IRS.
Who Is Able to File Form N° 1920?
- Taxpayers who are deemed to be domiciled or resident for tax purposes in Chile (Chilean nationals or foreign nationals with more than three years of tax residence in Chile), prior to January 1, 2023.
Who Needs Not File Form N° 1920?
- Taxpayers who intend to declare assets and income located in countries considered “high risk.”
- Taxpayers who have been convicted, formalized (i.e., charged with a crime), or subject to other proceedings with the IRS, such as money laundering or tax crime.
- Taxpayers should not have summonses, liquidations, or assessments issued by the Chilean IRS related to assets or income they intend to report on this Form.
What Types of Assets and Income Could Be Subject to This Benefit?
- All types of assets, including movable and immovable property, tangible and intangible assets, such as shares or rights in companies established abroad, or the right to benefits from a trust or fiduciary arrangement.
- All types of financial instruments or securities, such as bonds, fund shares, deposits, and similar instruments, payable in foreign currency.
- Foreign currency.
- Income derived from the aforementioned assets, such as dividends, profits, and interest.
Statute of Limitations
From the date of tax payment, the IRS will have 12 months to review the extent to which the submitting taxpayer is in compliance with his/her report, to check the requirements have been met, and remit any tax differential that is determined. Once this period has elapsed, it is understood that the filing was made in a way that meets all the legal requirements.
