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 updates fair market value of assets subject to luxury taxÂ
Chile's tax administration Internal Revenue Service (SII) has published Resolution No. 39 in the Official Gazette on 27 March 2025, introducing updated asset lists along with their fair market values for the implementation of the luxury
Read More
Chile announces new VAT liability estimate process
Chile’s tax administration (SII) published Resolution Ex. SII No. 38-2025 in the Official Gazette on 27 March 2025. This Resolution allows taxpayers with maximum sales revenue up to 2,400 tax units (around USD 97,000) from the previous year to
Read More
Chile waives penalties for late filings due to IT glitch
Chile’s tax administration (SII) has waived the fine for the late filing of tax return No. 1948 (DJ 1948) through Resolution Ex. SII 34-2025 was published in the Official Gazette on 19 March 2025. This return reports dividend distribution by
Read More
Chile sets tax rates for mining SMEs
Chile's Internal Revenue Service (SII) has issued Resolution No. 33 of 13 March 2025, which sets new tax rates for small miners and SMEs involved in mining and selling gold and silver ores. The rates for small artisan miners using the simplified
Read More
Chile introduces new advance pricing agreement process
Chile’s Internal Revenue Service (SII) has issued Resolution No. 28 of 6 March 2025 on 6 March 2025, introducing a new approach for taxpayers to request advance pricing agreements (APAs). This new resolution replaces previous resolutions from
Read More
Chile updates list of preferential tax regimes
Chile's Internal Revenue Service (SII) has issued Resolution No. 30 of 6 March 2025 with an updated list of territories and jurisdictions with preferential tax regimes. The list reflects the new rules introduced by the Law on Compliance with Tax
Read More