The tax administration clarified that to be exempt from thin capitalisation rules, an entity must engage solely in financial activities (with limited complementary activities), certain assets are excluded from the 90% threshold, and the commercial year is defined as 12 months ending on 31 December.
Chile’s Tax Administration has published Ruling No. 1609-2025 (issued on 14 August 2025) on the SII’s website on 19 August 2025, confirming that entities conducting financial activities are exempt from thin capitalisation rules, in accordance with Article 41-F of the Income Tax Law (ITL).
At fiscal year-end, the law mandates debtors to confirm that for at least 330 days, 90% of their assets (valued per ITL) are loans or lease-to-own goods provided to unrelated parties. A relationship exists under Article 41(F) of the ITL. Total debt, including related or independent entities, must not exceed 120% of the loans or lease-to-own goods provided in the fiscal year.
Ruling No. 1609-2025 clarifies that to be exempt from thin capitalisation rules, taxpayers must primarily engage in financial activities and only conduct directly related complementary activities. It excludes specific assets (e.g., fixed/intangible assets, VAT credits, inventory, and non-group investments) from the 90% asset threshold.
Additionally, it defines a “commercial year” as a 12-month period ending on 31 December annually.
