On January 16th, 2025, the Chilean Internal Revenue Service (SII, for its initials in Spanish) issued Circular No. 6, which, among other matters, provides instructions regarding the authorized representatives business groups must appoint before the SII under Law 21,713.
This representative will be the natural person responsible for representing the entities belonging to the same business group, as defined by Article 96 of Law 18,045 on the securities market, referenced by Article 8, Section 14 of the Tax Code.
Although Circular No. 6 does not specify how this representative should be reported, who is responsible for doing so, or within what timeframe, it does provide some guidance that will allow business groups to prepare for this new obligation.
First, it classifies the business group’s representative as a special agent and explicitly states that their powers will be limited to those outlined in Articles 33 and 8, Section 18 of the Tax Code. These powers include collaboration agreements, information sharing, information requests, and tax audits conducted by the SII, among other matters. This distinction separates the business group’s representative from legal representatives or other agents a taxpayer may have registered on the SII’s digital platforms.
Second, the appointment, modification, or revocation of the representative must be reported to the SII electronically, attaching the necessary documentation to support the appointment, modification, or revocation. As noted, the SII has yet to issue a resolution providing detailed guidance on how these updates should be reported.
Third, Circular No. 6 specifies that the appointment of a business group representative must comply with the formalities set out in Circular No. 24 from 2024. It’s worth recalling that this earlier circular outlines a series of formalities for someone to act on behalf of others before the SII, aiming to reduce the need for notarized documentation. For business group representatives, it is recommended that their appointment be formalized through a public deed to avoid the need for further proof of authorization and to comply with other legal deadlines established by the same.
Despite the clarifications provided in Circular No. 6 regarding business group representatives, some practical questions remain: Will the appointment document need to reference the business group explicitly so the SII can identify who the representative is acting for? Should a single document be used, or should there be one document per member of the business group? Can there be more than one alternate representative? These and other questions must be addressed in the upcoming resolution the SII will issue to provide instructions on reporting information about the appointment of the business group’s representative.
You can access Circular No. 6 from the SII at the following link: https://www.sii.cl/normativa_legislacion/circulares/2025/circu6.pdf
