Today, April 1, marks the beginning of the 2021 Annual Tax Return (“Operación Renta”) process. For the second consecutive year, this process will take place in the context of the pandemic and, for the most part, remotely. Fortunately, Chile had already advanced significantly in remote filing many years ago.

For the first time, taxpayers will file under the new tax regimes introduced by the Tax Modernization Reform (Law No. 21,210). These include the semi‑integrated regime under Article 14 A, as well as the ProPyme and ProPyme Transparent regimes. Returns may be submitted from April 1 through May 10 for online filings with no payment due, and from April 8 through April 30 for filings that involve a tax payment.

Although it is commonly stated that taxpayers who file early and have no tax due will receive their refunds sooner (this year, those filing between April 1 and April 23 will receive refunds on May 12), in many cases it is not advisable to file in the first few days. This is because third parties required to report information on taxpayers’ income (withholding agents) may not yet have filed all relevant sworn statements, or such statements may be modified during April. This can lead to inconsistencies in an early-filed return, ultimately delaying the refund process.

Self‑employed workers (“trabajadores a honorarios”) must pay social security contributions, which will be withheld from their tax refunds. They may choose to contribute based on 100% of their taxable base or only 27% of it.

If you have any questions or need assistance, you may contact Boris León and/or our Tax Compliance team