On April 29, 2022, the Chilean government extended the deadline to file 2021 Chilean annual income tax returns for companies and individuals until May 12, 2022.  The original deadline was May 2, 2022. 

WHY THIS MATTERS

The extended deadline provides relief to taxpayers who may be unable to meet the original filing/reporting deadline. Taxpayers and tax service providers should be aware of the relaxation of the filing deadline and take action to meet the new deadline as appropriate.  This extension is the result of Supreme Decree N° 623 issued by Chile’s president1.

A similar measure was taken in 2021 whereas a result of the pandemic a one-month extension was granted.  (For prior coverage, see GMS Flash Alert 2021-132, May 4, 2021.)

2021 Chilean Income Tax Returns

Filing and Payment Extension

For the 2021 tax year, taxpayers could file their Chilean income tax returns from April 1, 2022 to May 2, 2022, and pay any applicable balance due (returns with refunds had a deadline of May 10).  On April 29, 2022, the government communicated that the filing deadline has been extended until May 12, 2022, for following individual returns:

  • 2021 Annual Income Tax Return (Form 22) regardless of tax return result (i.e., refund or balance due).
  • Late-filed tax returns are subject to an inflation adjustment and interest of 1.5 percent per month, penalties of 10 percent for the first 5 months, thereafter increased by 2 percent per month (limited to 30 percent) on the total tax amount due.

FOOTNOTE

1  The Supreme Decree has been published on Chile’s official gazette (Diario Oficial, Núm. 43.241, Sábado 30 de Abril de 2022) website. See: https://www.diariooficial.interior.gob.cl/publicaciones/2022/04/30/43241/01/2122774.pdf.

The information contained in this newsletter was submitted by the KPMG International member firm in Chile.

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GMS Flash Alert is a Global Mobility Services publication of the KPMG LLP Washington National Tax practice. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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