Ruling 1750 clarifies that capital gains from selling shares in public companies or mutual funds qualify for the Article 107 special regime only if the shares meet the stock market presence requirement at the time of sale.
Chile’s tax administration (SII) published Ruling No. 1750-2025 on its website on 3 September 2025, providing clarification on the taxation of capital gains.
Ruling 1750 states that capital gains from selling shares in public companies or mutual funds can qualify for the special capital gains regime under Article 107 of the Income Tax Law (ITL). However, this benefit is only applicable if the shares meet the stock market presence requirement at the time of the sale.
Article 107 establishes a 10% flat tax on profits from selling qualifying shares in Chilean companies listed on the stock market, as well as listed investment fund units, provided certain conditions are met. The ruling clarified that the requirement for stock market presence applies at the moment of sale or redemption, rather than when the shares or units were initially purchased.
Ruling No. 1750-2025 clarifies that, under Article 107, a special tax regime applies to capital gains from the sale of shares that no longer have a stock market presence. However, this benefit is only available if the sale occurs within 90 days of the shares losing their status as a stock market listing.
