The Internal Revenue Service (IRS) of Chile has published the last set of Circulars (Circular no. 40, 41, 42, 44, 48 and 49) along with instructions on the amendments introduced by the 2015 Simplification Law (Law 20,899) on 13th and 14th July 2016. Law 20,899 was published in February 2016 that simplifies the 2014 Tax Reform (Law No 20,780). Here, instructions in Circular 40 is related to the CFC rules incorporated into the Income Tax Law under Article 41G and instructions in Circular 41 is associated with the General Anti-Avoidance rules (GAAR) incorporated into the Tax Code. Circular 42 specifies the transaction, transactions or series thereof to which GAAR applies. Circular 44 describes about capital contributions, revalorization of tax equity, share premiums and stock dividends. Circular No. 48 summaries the changes to the foreign tax credit rules and are effective from 1st January 2017. And lastly, Circular 49 describes and gives guidelines on the application of the two new alternative income tax regimes that will become effective on 1st January 2017. Those regimes are the Attributed Regime and the Partially Integrated Regime.
Related Posts
Chile: SII clarifies arm’s length pricing for intangiblesÂ
The Chilean tax authority (SII) has released Letter Ruling No. 1801, dated 20 July 2026, in response to a taxpayer inquiry on whether the DEMPE analysis set out in Chapter VI of the OECD Transfer Pricing Guidelines is an appropriate method for
Read MoreChile: SII clarifies withholding tax for short-term performing arts contracts
Chile’s tax administration (SII) has issued Ruling No. 1723-2026 of 14 July 2026, in which it addresses and formalises the tax treatment for short-term performing arts workers. The SII issued this directive in response to a specific
Read MoreChile: SII extends tax relief for 20 more municipalities after storm damage
Chile's tax authority (SII), the Ministry of Finance and the General Treasury, announced on 20 July 2026 that they have added 20 municipalities to a forgiveness programme for storm-affected taxpayers, expanding relief to cover individuals and
Read MoreChile: SII, mining authority push advance pricing agreements to lock in transfer prices
Chile's tax authority (SII) announced on 20 July 2026 that SII and Chile’s Copper Commission (Cochilco) hosted a conference on 13 July 2026, aimed at encouraging major mining companies to enter into advance pricing agreements—formal contracts
Read MoreChile: SII grants tax amnesty to storm-affected regions through October 2026
Chile's Ministry of Finance, the tax authority (SII), and the General Treasury of the Republic (TGR) have granted automatic tax relief to taxpayers in 28 municipalities hit by a recent storm system, according to a release on 19 July
Read MoreChile: SII releases list of registered betting platforms under Digital VAT regime
The Chilean Internal Revenue Service (SII) has announced that 25 online betting platforms registered under the simplified tax regime for declaring and paying VAT on Digital Services between 14 and 15 July 2026, following the introduction of
Read More