The SII is seeking public comment on circulars regarding amendments introduced by the National Reconstruction Act

The Internal Revenue Service (“SII”) has opened a public consultation on seven draft circulars that regulate legal amendments introduced to tax legislation by Law 21,850 on National Reconstruction.

The public consultation runs from November 3 to November 17 of this year. Through this process, taxpayers can use the SII’s website to submit their questions and comments regarding the draft circulars published there.

The circulars submitted for public comment address the following specific topics:

• Reduction of the First-Category Tax rate to 23% and reinstatement of the income tax system.
• Amendment to Article 107 of the Income Tax Law, which classifies capital gains from the sale of shares and other publicly traded instruments as non-taxable income, subject to compliance with the requirements established by that provision.
• Establishment of a flat tax of 5% on income derived from the rental of affordable housing (in the case of individuals, income derived from the rental of up to two affordable housing units is exempt, and this flat tax applies starting with the third unit).
• Temporary 50% reduction in the gift tax and exemption from the probate process (judicial authorization).
• Temporary VAT exemption on the sale of new homes.
• Amendment to Article 36 of the Sales and Services Tax Law, regarding VAT refunds for exporters.
• New powers granted to the SII to request and cross-check information with other government agencies.

As the SII publishes official circulars on these topics, as well as others regarding legal amendments and transitional provisions introduced by Law 21,850, we will publish specific newsletters on each subject.

In cases where we have comments or questions, Ontier Chile will submit them within the specified timeframe and through the designated process.