On July 11th, Law No. 21.755 was published, introducing a series of measures aimed at regulatory simplification and the promotion of economic activity. Among others, the following stand out:
New incentives for the Pro SME Regime
Among other things, the liquidity of companies under the Pro SME regime is expected to improve through a temporary reduction in the First Category Income Tax rate.
This new rate would be 12.5% for tax years 2026, 2027, and 2028, provided that, at the close of the corresponding fiscal year, the contribution rate established in the Fourth Transitory Article of Law No. 21.735 -which creates a new mixed pension system and a social insurance scheme within the contributory pillar, enhances the universal guaranteed pension, and establishes benefits and regulatory changes- is 1%, 3.5%, and 4.25%, respectively.
During these fiscal years, the monthly provisional payment (PPM, for its initials in Spanish) rate is reduced by half. This applies to the tax return and payment for the month following the publication of the law.
For income received or accrued during the 2028 fiscal year, the tax rate will be 15%, provided that the aforementioned contribution rate reaches 5% at the end of that year.
Prepaid cards must report
Article 85 bis of the Tax Code was amended to include prepaid card issuers in the obligation to report to the Chilean IRS (SII, for its initials in Spanish) the account holders and balances of associated accounts, when:
- A user receives more than 50 deposits from different issuers in a day, week, or month.
- A user receives more than 100 deposits in a semester.
The report must include the taxpayer ID (RUT, for its initials in Spanish) of the account holder, the type of card/account, the number of deposits, and the total aggregated amount.
Before this amendment, only banks, cooperatives, insurance companies, and custodial entities were subject to this reporting obligation.
New deadlines for R&D
The deadlines for the Research and Development (R&D) investment incentive have also been extended until 2035.
This benefit allows companies to claim up to 35% of the certified expense as a credit against First Category Income Tax, and to deduct up to 100% as a tax-deductible expense. This applies to projects authorized by CORFO.