On October 24, 2024, Law No. 21.713 on Tax Compliance came into effect, aimed at strengthening the fight against tax evasion, expanding oversight tools, and promoting formalization. Below are some key points:

1. Representation of Business Groups before the SII:

Business groups must appoint an official representative before the Internal Revenue Service (SII) to channel communications and coordinate the implementation of tax collaboration measures.

2. Changes in Valuation Authority and Corporate Reorganization Rules:

The SII may value transactions when the assigned value significantly deviates from “normal market values” (replacing the former concept of “current market value”). “Normal market values” are defined as those agreed upon by unrelated parties under comparable conditions, considering factors such as industry characteristics, functions, assets, and risks assumed. New requirements are introduced for corporate reorganizations where the SII’s valuation authority is not applicable.

3. Changes in International Taxation:

Adjustments to transfer pricing rules. New provisions on passive income (CFC rules), strengthening control over income generated abroad by related entities.

4. Obligations for Banks and Financial Entities:

Banks must report to the SII on account holders who: Receive more than 50 credits from 50 or more individuals or entities in a single day, week, or month, or Receive at least 100 credits from 100 different individuals or entities within a semester.

5. Changes in VAT Rules:

Operators of digital intermediary platforms are now subject to VAT. New rules are established for the acquisition of movable goods abroad. A simplified tax regime is incorporated for non-resident entities providing services or making sales to Chilean end consumers who are not VAT taxpayers.

6. Temporary Benefit for Capital Repatriation:

An incentive is introduced for capital repatriation, encouraging its declaration under special conditions.