On 1 May 2022, Law No. 21.440 entered into force in Chile, providing for the introduction of a new donation regime and tax benefits in support of non-profit enterprises. The new regime covers donations in cash or tangible or intangible assets to registered non-profit enterprises for different projects/purposes as specified by the law, including for social development, community development, housing development, health, education, sciences, culture, sports, and several others. The tax benefits are available for payers of First Category Tax (Impuesto de Primera Categoría), Second Category Tax (Impuesto Único de Segunda Categoría), Complementary Global Tax (Impuesto Global Complementario), and Additional Tax (Impuesto Adicional).

Benefits for donors and donees under Law No. 21.440 include that qualifying donations are not subject to the donation tax under Law No. 16.271 (up to 40%) and donations are deductible from the relevant tax bases, subject to the conditions set out in the law. For donors subject to the First Category Tax (corporate tax), donations may be deducted annually up to the lesser of:

• 20,000 monthly tax units (UTM), considering the value of the UTM of the closing month of the respective fiscal year; or
• any of the following values determined at the end of the respective fiscal year, at the donor's choice:
  • 5% of the tax base;
  • 4.8‰ (0.48%) of taxable capital; or
  • 1.6‰ (0.16%) of effective capital.

For donors subject to the other taxes, donations may be deducted annually up to the lesser of:

• 10,000 UTM, considering the value of the monthly tax unit of the closing month of the respective fiscal year; or
• 5% of the tax base.

Unidad Tributaria Mensual (UTM) is an indexed unit that is updated monthly. The latest UTM value is CLP 57,557 for June 2022.