The Chilean Tax Administration (SII) has released new guidance on the recent amendments to the luxury goods tax introduced under Article 5 of Law 21,713-2024.
This guidance, outlined in Circular 50-2024, was published and came into effect on 28 November 2024.
This follows after the tax authorities Administration launched a public consultation on a draft circular which proposed various amendments to the luxury goods tax on helicopters, yachts, airplanes, and cars. The consultation ended on 12 November 2024.
The Circular clarifies that taxable events apply to luxury goods in Chile, including helicopters, yachts, and airplanes over 160 kg valued above 122 UTAs (approximately USD 98,000), as well as vehicles valued above 62 UTAs (approximately USD 50,000).
The Circular mentions that the tax base has been updated to “normal market value” instead of “current market value.”
The luxury tax rate will remain at 2% and is due annually on 31 December. Additionally, the luxury goods tax cannot be deducted as an expense by First Category Tax taxpayers.
The Circular also mentions that luxury goods owned by the state or municipalities or by resident companies for regular business operations are exempt from the luxury goods tax.
