Chile: Tax relief measures under emergency plan (COVID-19)

Chile: Tax relief measures under emergency plan

There are tax measures that are intended to provide relief in response to the coronavirus (COVID-19) pandemic.


One measure is a temporary reduction of the rate of the IDPC (Impuesto de Primera Categoría) to 10% (from 25%)—a measure provided under the framework of the emergency plan for economic and employment reactivation. In general, taxpayers subject to the IDPC regime can benefit from this reduction in 2020, 2021, and 2022. This relief would also apply with regard to advance payments of IDPC.

Other relief includes a temporary change to the rules for depreciation, allowing IDPC taxpayers to depreciate 100% of the value of assets in the year in which they are acquired. The depreciation regime applies for the period 1 June 2020 through 31 December 2022. Depreciation is also allowed at 50% in the year in which use of the asset begins (effective 1 October 2019 through 31 May 2020) and a 100% write-off for goods used in the Araucanía region for the period 1 October 2019 through 31 May 2020.

A temporary rule allows 100% amortization of certain intangibles (that is, intangibles intended for the development or maintenance of the business such as industrial property, intellectual property or a new plant variety, if purchased between 1 June 2020 and 31 December 2022).

Read a March 2021 report (Spanish and Engish) [PDF 849 KB] prepared by the KPMG member firm in Chile

Other topics addressed in this report concern:

  • Instructions on changes to the tax code
  • How the tax authority (Servicio de Impuestos Internos—SII) will inform taxpayers
  • Reporting for indirect sales when at least 10% of the total assets are owned by a foreign entity
  • Deductible expenses incurred by companies in compliance with standards for the sustainable use of water resources
  • Increase in depreciation for assets that have become useless
  • Bad debt write-offs

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