CHL Tax issued Circular 45 concerning amendments to tax obligations pursuant to Law 21.713, which are organized in Circular 45 in table form with the effectiveness dates.
Law 21.713 to ensure tax compliance published in official gazette on Oct. 24, 2024.
CHL FIU issued a press release informing on requirements under the new law.
Highlights
Law 21.713 establishes rules, requirements to ensure compliance with tax obligations within the pact for economic growth, social progress and fiscal responsibility.
Among main things, the new law introduces a voluntary and extraordinary system for declaring assets or income located abroad, subject to a single, substitute tax of 12%.
With exception of countries or jurisdictions classified as high risk or non-cooperative in the prevention and fight against money laundering and financing of terrorism by FATF.
The new Law was built on seven pillars: modernization of the tax administration and Tax and Customs Courts, combating informality, combating tax crimes and evasion.
Strengthening taxpayer ombudsman, settling tax debts and strengthening institutions.
The above, with the aim of collecting, in regime, USD 4.5 billion annually, equivalent to 1.5% of the GDP, by combating evasion, informality, illicit trade and organized crime.
Among its scope are improvements to governance of Internal Revenue Service (SII).
Strengthen CHL Tax SSI through creation and Executive Committee and a Tax Council.
Information Sharing
By filing of tax return or declaration, taxpayers authorize CHL Tax, CHL FIU and any other State institution with jurisdiction to request specific information from banks.
Banks with information on the income or assets included in the tax declaration.
Said banks must deliver it without further formalities than what was requested.
All the aforementioned institutions may exchange said information among themselves.
CHL Tax must report to the CHL FIU the operations it deems suspicious per Law 19.913
The CHL FIU, upon request, will have permanent and direct access for the proper fulfillment of its legal functions, to all information collected by the public institutions.
Information regarding assets and income abroad declared by taxpayers, without restrictions of any kind, including if it is subject to secrecy or confidentiality.
CHL Tax must implement controls on the identification of taxpayers who join system.
The aforementioned controls must satisfy the standards established by the FATF.
CHL CB will provide the information requested by CHL FIU or Public Prosecutor's Office.
Effectiveness
Amendments without a specific effectiveness date come into force on first day of the month after the date of the Law's publication in the official gazette, i.e., Nov. 1, 2024.
Regulators
CHL CB; CHL FIU; CHL Tax
Entity Types
Auditor; Bank; Corp
Reference
Cir 45, 299422.2024 GE, 10/25/2024; OG CVE 2561825, Law 21.713, 10/24/2024
