In January 2026, Chile has been under one of the most severe emergencies in recent years due to forest fires that have devastated extensive areas of the Ñuble, Biobío, and La Araucanía regions.

In response to this emergency, municipalities, social organizations, and private entities have launched solidarity campaigns, set up collection centers, and implemented direct support mechanisms to coordinate assistance from individuals and companies. Therefore, understanding how the special donation regimes established under current legislation operate is essential in order to facilitate support for the affected areas and provide tax certainty to individuals and businesses wishing to contribute.

Below is a description of how the main special regimes applicable in cases of disaster operate, along with the associated tax benefits, considering the updates introduced by the administrative authority in 2026.

Donations under Article 7 of Law No. 16,282

This regulation, contained in Decree with Force of Law No. 104 of 1977, establishes that donations made to the State, natural persons or legal entities under public law, private‑law foundations or corporations, and universities recognized by the State, aimed at satisfying basic needs related to food, shelter, housing, hygiene, debris removal, education, communication, and transportation for inhabitants of the affected areas, are governed by the following rules and benefits:

I. Requirements

a) A Supreme Decree must be issued declaring the existence of an earthquake or catastrophe in a specific area.

b) The donation may consist of money or goods of any nature or kind, provided they help meet the basic needs described above for the inhabitants of the affected areas.

II. Donors

c) Donors may include:

• Corporate taxpayers subject to the First Category Income Tax (IDPC), even if they are in a tax‑loss position,

• Employees or self‑employed workers

III. Donees

d) Donees may include:

• The State.

• Natural persons.

• Legal entities under public law.

• Private‑law foundations or corporations.

• Universities recognized by the State.

IV. Benefits

e) These donations are exempt from the donation tax under the Law on Inheritance, Allocations and Donations Tax (“LIHAD”), as well as from the “insinuación” approval procedure.

f) The donation may be deducted from the taxable income for income tax purposes. In the case of donations in kind made by IDPC taxpayers, the tax cost of the donated goods will be considered for deduction purposes. For taxpayers under the Second Category Single Tax (IUSC) or the Global Complementary Tax (IGC), the adjusted acquisition value will apply.

g) The donation will constitute non‑taxable income for the recipient institutions.

h) There is no limit on the donation amount.

i) Donations made under this regime are not subject to the absolute general limit (LGA) applicable to tax‑benefited donations. Nor are they included in the aggregate total of donations subject to that limit.

V. Reporting obligation

j) Donees receiving these donations must file Affidavit No. 1832 in the following year. Supporting evidence may consist of any documentation legally admissible in relation to the donation and its delivery.

Donations to the National Reconstruction Fund created by Law No. 20.444

I. Donee

a) The National Reconstruction Fund (“the Fund”), whose purpose is to finance the construction, reconstruction, replacement, refurbishment, restoration, or rehabilitation of infrastructure, facilities, architectural heritage in heritage or protected areas, works, and equipment located in municipalities, provinces, or regions affected by earthquakes, tsunamis, volcanic eruptions, floods, landslides, or other disasters occurring within Chile. Donations made to the Fund are governed by the following rules and benefits:

II. Term

b) The donation must be made within a maximum of two years from the issuance of the Supreme Decree identifying the areas affected by a disaster (or within a shorter period established by the President of the Republic through a grounded Supreme Decree).

III. Object of the donation

c) As a general rule, the donation must be made in money. However, IDPC taxpayers who determine their taxable income based on full accounting and a balance sheet may make donations in kind.

IV. Benefits

d) These donations are exempt from the donation tax under Law No. 16,271, as well as from the “insinuación” approval procedure.

V. IDPC taxpayers

e) The amount of the donation and the resulting tax benefit depends on whether the donation is allocated to the Fund without a specific purpose or designated for a particular project:

• If allocated to the Fund without a specific purpose, a credit equal to 50% of the donation may be applied, and any remaining amount not used as a credit may be deducted as an expense.
• If allocated to a specific project, the entire donation may be deducted solely as an expense.
• In both cases, the total amount of tax benefits (whether deductions or credits) may not exceed the taxpayer’s taxable income for the year in which the donation is made, or 0.16% (1.6 per thousand) of the company’s tax equity at year‑end, at the taxpayer’s election.
• For taxpayers determining taxable income under full accounting rules, donations in kind will be exempt from all taxes, duties, fees, and any charges collected by Customs.

VI. Taxpayers under the IUSC, IGC, or Withholding Tax

f) They are entitled to a tax credit equal to 40% of the donation in the first two cases and 35% in the latter.

VII. Inheritance

g) Heirs or legatees of a taxpayer who made monetary donations prior to their death may credit 40% of the amount donated against the inheritance or gift tax (IHAD).

h) Monetary donations made by an estate may also qualify for a tax credit, provided they are made within three years from the date of the decedent’s death.

i) Donations to the Fund are not subject to the LGA under Law No. 19,885 and are not included in the aggregate total of donations subject to that limit.

j) Donations benefiting from the tax incentives of Law No. 20.444 may not simultaneously benefit from tax incentives under any other laws.

For any question or advice on the matter, please contact our Tax team.