Chile’s Internal Revenue Service has implemented an optional eight-month tax regime allowing businesses to regularise eligible historical untaxed profits at a flat 10% rate, subject to waiving the First Category Income Tax credit.
Chile’s tax administration, the Internal Revenue Service (SII) announced the implementation of the Substitute Single Tax for Final Taxes (IUSIF) on 21 October 2026, a temporary mechanism established under the National Reconstruction and Economic and Social Development Law.
This optional tax regime gives businesses an eight-month window to settle historical, untaxed corporate profits.
The key elements of IUSIF are as follows:
- 10% flat rate: Taxpayers who elect this regime pay a single 10% tax rate, fully satisfying final tax obligations (Global Complementary or Additional Tax) and allowing funds to be withdrawn freely at any time without additional taxation.
- The IDPC credit trade-off: In exchange for the preferential 10% rate, taxpayers must waive the First Category Income Tax (IDPC) credit that would normally be available to offset final tax liabilities.
- Eligible balances: The benefit applies to three specific categories: the Total Taxable Profits Balance (STUT / former FUT), the Reinvested Profits Fund (FUR), and excess withdrawals.
- No accounting restrictions: Participation does not require belonging to a specific tax regime or keeping a particular accounting system.
Filing requirements
Business owners must declare and pay the tax using Form 50 (F50) in Chilean pesos (CLP), or in foreign currency for authorised companies. The operational guidelines are established under SII Resolution No. 141.
