The calculation of interest for late tax payments in Chile has changed from a fixed monthly rate of 1,5% to a daily penalty interest. This is calculated using the current interest rate for long-term operations, as published by the Financial Market Commission (Comision para el Mercado Financiero in Spanish, hereinafter “CMF”) and applies to amounts up to 2.000 Development Units (hereinafter “UF”), equivalent 81.882 USD.
For those payments made in person, the payment voucher will have a validity period of five business days. On the other hand, payments made online consider the interest rate as of the day of payment.
Previously, the late payment interest in Chile was calculated using a fixed monthly rate. This rate was typically set at 1,5% per month. The interest was applied to overdue tax amounts, and the calculation was straightforward, based on the number of months the payment was delayed. This fixed rate method did not account for daily fluctuations or market-based interest rates, making it a simpler but less flexible approach compared to the current method, which incorporates a market rate plus an additional percentage and is calculated daily.
More Details
Resolution Ex. N° 133 and the Circular N°12 establish the adjustment made to the calculation of interest rates for late tax payments in Chile. Together, they provide a comprehensive framework for applying the new interest calculation method, ensuring that taxpayers and tax authorities are aligned in their understanding and application of the revised regulations.
- Resolution Ex SII N°133 – specifies the actual interest rates to be used.
- Circular N°1 – provides detailed instructions and examples on how to apply the changes.
Amount on which the interest is calculated.
The daily penalty interest will be applicable on the owed tax, duly adjusted by inflation in accordance with the provisions of the first paragraph of Article 53.
This means that the daily penalty interest will be calculated on the amount of the owed tax increased by the same percentage of increase experienced by the consumer price index during the period between the last day of the second month preceding its due date and the last day of the second month preceding its payment.
Determination of interest
According to the final part of the fourth paragraph of Article 53, the Chilean IRS will issue a resolution in June and December each year to set the daily penalty interest rate for each semester.
This resolution will be published on the Chilean IRS website (www.sii.cl) and will apply to the semesters starting in July and January, respectively.
The Chilean IRS will consider the current interest rate for operations of one year or more, adjustable in national currency, up to the equivalent of 2.000 UF, equivalent 81.882 USD, as published by the CMF in the Official Gazette in June and December each year. This rate, increased by 3,5%, will be divided by 360 to determine the daily penalty interest rate for the respective semester.
To calculate the applicable penalty interest rate for a specific case, the Chilean IRS will use the semi-annual interest rate for the period between the tax or contribution due date and the actual payment date. This rate will be divided by 360 and multiplied by the number of days of delay within each semester. If the delay spans more than one semester, the penalty interest will be the sum of the daily rates for each semester.
The resulting value, expressed to two decimal places, will be the penalty interest rate applied to the adjusted amount owed. The process involves first adjusting the owed amount, then calculating the applicable interest rate based on the elapsed time between the due date and the payment date. If the dates fall within the same semester, the daily rate for that period is multiplied by the number of days of delay. If the period spans more than one semester, the daily rates for each semester are considered and multiplied by the respective days, then summed.
Validity for the payment of the calculated taxes
Since the calculation of penalty interest for overdue tax obligations is now done daily, the sixth paragraph of Article 53 specifies that the amounts determined in these payment orders are valid for five business days from the date of their issuance or subsequent recalculation. This period considers business days only, excluding Saturdays, Sundays, and holidays, as outlined in the second paragraph of Article 10.
In all cases, money orders or deposit orders must state that they are valid for 5 business days.
