The Chilean tax authority (Servicio de Impuestos Internos - SII) has published Resolution No. 76 and Resolution No. 77 of 8 July 2020. The Resolutions provide for extended tax relief measures in response to COVID-19 as per Supreme Decree No. 1.043, which was published 3 July 2020.

Corporate (First Category) Tax Relief

Resolution No. 76 extends relief from monthly provisional corporate (first category) tax payments. This includes that for taxpayers that have experienced a drop in their taxable base of at least 30% in the period January to May 2020 as compared to the same period in 2019, an exemption from monthly provisional tax payments is provided for amounts normally due in the months of July, August, and September 2020 (corresponding to the tax periods June, July, and August 2020, respectively). Qualifying taxpayers may also choose to make partial payments in these months.

Value Added Tax Relief

Resolution No. 77 extends relief from VAT payments. This includes that for taxpayers that have experienced a drop in averages sales of at least 30% declared in April, May, and June 2020 as compared to the same period in 2019, an extension of terms of payment is provided for amounts normally declared/paid in the months of July, August, and September 2020 (corresponding to the tax periods June, July, and August 2020, respectively). This includes:

• payment in 12 equal monthly installments beginning from October 2020, without interest, for taxpayers qualifying as SMEs on 3 July 2020 (revenue not exceeding 75,000 UF and certain other conditions); and
• payment in 6 equal monthly installments beginning from October 2020, without interest, for taxpayers with revenue of between 75,000 UF and 350,000 UF.

Sales amounts for determining the drop of at least 30% are determined as per the declarations made in April, May, and June 2019 and 2020 (corresponding to the tax periods March, April, and May, respectively).

Note - Unidad de Fomento (UF) is an indexed unit equal to CLP 28,681.32 (~USD 36.33) as on 16 July 2020.