Indications to the bill on Compliance with Tax Obligations

Our Tax group announced the 10 most relevant changes that the 2024 Tax Reform project would have.

On March 29, the Ministry of Finance submitted the indications to the bill on Compliance with Tax Obligations within the pact for economic growth, social progress and fiscal responsibility.

In relation to this, the following changes were proposed:

New form of notifications

It is proposed that it come into effect in May 2025. In addition, modifying the form of notification of resolutions that modify tax assessments or real estate contributions is done by email.

Related parts

As a general rule, those of siblings are excluded from transactions between related parties.

Revocable donations

The possibility of a taxpayer to request from the Treasury the refund of the tax paid under a revoked donation, within a period of 3 years, is expressly recognized. It is also established that the tax borne by a revocable donation will be a credit against the inheritance tax that corresponds to the donated property.

Turning term

The procedure is regulated to cancel a taxpayer’s request to terminate his business, when he has not presented all the necessary information to give rise to the request. In this case, the SII must grant a period of 5 days for them to be provided. If not, the SII will issue a resolution canceling the request and expressly indicating the documents that were not provided.

The procedure is regulated to cancel a taxpayer’s request to terminate their business activity, when they have not submitted all the information necessary to give rise to the request. In this case, the SII must grant a period of 5 days for them to be contributed. Otherwise, the SII will issue a resolution canceling the request and expressly indicating the documents that were not provided. Two new measures are added against informality. On the one hand, the tax crime that allows the seizure of transferred assets without complying with tax obligations is modified and, on the other, the power of the SII is expanded to establish the obligation to implement traceability procedures for any type of asset.

Return procedure by Article 27 Bis of the LIVS

It is established that the obligation to annually refund at least one tenth of the VAT returned by application of article 27 bis will be counted from the commercial year in which the taxpayer begins to carry out operations taxed with VAT, establishing a maximum refund period of 15 years counted. from the year following the refund request.

Real Estate Appraisal Claim Procedure

It is expressly recognized that the period to complain regarding general appraisal processes is 180 days from the publication of the appraisal. And, it is established that the claim procedure for individual modifications will not be subject to the causes of the general procedures, but will maintain its current situation.

Appraisal standard and reorganizations

The following indications are made:

• The express enumeration of valuation methods is eliminated.
• Taxpayers will be able to prove with all the information that the operation was carried out at market values.
• With respect to business reorganizations, those that involve the transfer of ownership of shares or rights to tax havens or that are exempt from accounting are excluded.

Control of passive income abroad

Regarding article 41 G, it is proposed that the profits generated in a company that the standard considers as passive will always be recognized on an accrual basis, when the entity is domiciled or resident in a country classified as a tax haven.

Affluent paradises

It is proposed to modify the transfer pricing rule, establishing that the adjustments determined within an Advance Price Agreement process will not be subject to the special rate of rejected expenses (art. 21), with the objective of not penalizing taxpayers, who voluntarily sign agreements with the tax administration.

Finally, we highlight that the bill represents a significant step towards reducing the compliance gap and obtaining resources. In this way, the Executive seeks to address the challenges that will have a direct impact on taxpayers and tax planning [See note on seven axes of the project here].

For more information on these topics you can contact our Tax team:

Rodrigo Albagli | Partner | ralbagli@az.cl

Álvaro Rosenblut | Partner | arosenblut@az.cl

David Ancelovici | Director Tax Group | dancelovici@az.cl

Pablo Trucco | Senior Associate | ptrucco@az.cl

Elisabet Pinto | Associate | epinto@az.cl

Valentina Herrera | Associate | vherrera@az.cl

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