Chile: Tax developments in response of COVID-19
General Information
This page offers an overview of tax developments being reported globally by KPMG member firms in response to the Novel Coronavirus (COVID-19).
The content will be updated regularly. However, due to the fast-moving pace of change, it may not always reflect the most current developments in a given jurisdiction. Please refer to the date of accuracy and refer to the relevant links, under additional information, for original source information.
Date accurate as of: 10 June 2020
The Chilean Government announced a fiscal stimulus package worth US$11.8bn (4.7% of GDP) to tackle the economic impact of the novel coronavirus (Covid-19) outbreak. The stimulus package includes a number of tax measures as follows:
- Stamp tax rate reduced to 0% for all credit, financial and refinancing transactions between April 1 and October 30, 2020.
- Elimination of obligation to make monthly advance income tax payments for the period April – June, 2020. Applicable to all taxpayers.
- All expenses incurred in measures related to the Covid-19 outbreak will be deductible for income tax purposes.
- Deferral of VAT payable for the April – June , 2020 period, for taxpayers with annual sales up to UF 350,000 (equivalent to US$11.8m approx.). Deferred VAT payable in 6 or 12 equal installments with 0% interest starting in July 2020.
- Deferral of annual income tax payment until July 31, 2020 for SMEs, i.e. taxpayers with annual sales up to UF 75,000 (equivalent to US$2.5m approx.).
- Deferral of the payment of real estate tax for individual owners of real estate with aggregate fiscal value equivalent to US$160k approx. and companies with annual sales up to UF 350,000.
- Early payment of income tax refunds during April 2020, for individuals and in the case of companies, for those with annual sales up to UF 75,000.
- Full waiver of interest and penalties for late filing of the annual income tax return due on April 30, 2020 and monthly VAT returns for filings done up to September 30, 2020.
- No monthly advance income tax payments required of all taxpayers for the period April - June 2020.
- Another provision allows donations associated with COVID-19 to be treated as expenses for tax purposes.
