Note from the Tax Knowledge Center written for the Fynsa Newsletter.

"A delicious chocolate-covered cookie". This is probably the most common answer Chileans give when they are asked about the famous Super 8. However, for the tax world, this concept acquired a particular meaning in 2014, with Law No. 20,780 on Tax Reform.

Why? A decade ago, this law - promoted by the government of the then President Michelle Bachelet - incorporated among its transitory provisions a voluntary and extraordinary system of declaration of assets and income abroad, which gave taxpayers, with domicile and residence in Chile, the option to regularize investments and income that were in tax non-compliance, through the payment of a single and substitute tax at a rate of 8%. Hence, it was colloquially known as "Super 8".

Today, the recently published Law No. 21.713 which "Dictates norms to ensure compliance with tax obligations", opens a similar window again, this time with a single 12% tax. opens again a similar window, this time with a single tax rate of 12%, so now there is talk of "Super 12". We will tell you about its main scopes as follows.

Who can apply and how?

Transitory Article 11 of Law No. 21,713 states that "taxpayers domiciled, resident, established or incorporated in Chile prior to January 1, 2023, may voluntarily choose to declare to the Chilean Internal Revenue Service, in the manner determined by resolution, their assets and income abroad, when they have been subject to taxes in Chile and have not been timely declared or taxed with the corresponding taxes in Chile".

The assets and income allowed to be included in this declaration are as follows*:

1. All kinds of property, including movable and immovable, tangible and intangible, such as shares or rights in companies incorporated abroad, or the right to the benefits of a trust. trust or trust. Also included in this category are all kinds of financial instruments or securities, such as bonds, fund shares, deposits, and other similar, which are payable in foreign currency.
2. Currencies.
3. Income derived from the assets indicated in the preceding letters, such as dividends, profits, interest, and any other increase in net worth that such assets have generated.

* Only the assets or rights that the taxpayer can reliably prove to have acquired prior to 01/01/2023 and the income derived from such assets up to 12/31/2023 may be subject to this voluntary and extraordinary tax return system.

In practical terms, on October 25, 2024, the tax authority issued Resolution Ex. No. 103, which establishes the format and instructions for filling out Form No. 1920, especially established for these purposes. Meanwhile, the SII Circular that regulates its application, completed the public consultation stage, so it is about to be issued.

You can review more details about this topic in the information portal prepared by the SII.

Super 12" deadlines

One of the aspects that most attracted the attention of taxpayers and their tax advisors was the term that Law No. 21,713 granted to exercise the option to regularize investments abroad, initially established between November 1 and 30, 2024.

In view of this situation, Congress quickly approved the so-called Short Tax Compliance Law (Law No. 21,716, published on November 13, 2024), which - among other provisions - extended the validity of some transitory rules of the original law.

Among them, the deadline for taxpayers to file the declaration of assets and income abroad, which was extended until December 31 of this year.

Tax Knowledge Center - CCT