New tax remission policy: Impact on the payment of interest and penalties
On June 18th, Supreme Decree No. 437 was published in the Official Gazette. In compliance with Article 207 of the Chilean Tax Code, it establishes an integrated remission policy for the Internal Revenue Service (SII, for its initials in Spanish) and the General Treasury of the Republic (TGR, for its initials in Spanish).
The new framework aligns the criteria applied by both authorities and completes the changes introduced by Law No. 21,713 on Tax Compliance. Its main practical effect is that ordinary remission is no longer calculated on the total amount of punitive interest, but only on the additional 3.5% component added to the market rate.
Although as of 2025 the daily interest calculation may be less burdensome than the previous monthly system, the amount that can effectively be remitted will generally be lower.
How is interest currently calculated?
Until December 31st, 2024, outstanding tax debts accrued punitive interest of 1.5% for each month or fraction of a month of delay. As a result, even a one-day delay could generate interest equivalent to a full month.
The Tax Compliance Law replaced this mechanism with a daily punitive interest. As from January 1st, 2025, the following formula applies:
[(current interest rate published by the CMF + 3.5% annual) ÷ 360] * days of delay
The SII publishes the rate on a semiannual basis. When the default spans more than one semester, the interest corresponding to each period must be added.
Although this mechanism is indexed to a market rate, it links the surcharge to the actual number of days in default and generally reduces the cost of short-term delays.
Only the additional 3.5% may be remitted
The current punitive interest rate consists of: (a) a market-based rate; and (b) a statutory additional charge of 3.5% per year.
Under the new policy only on the second component may be remitted. The market rate must be borne by the taxpayer. Therefore, 75% remission no longer implies reducing 75% of the total interest, but only 75% of the portion corresponding to the 3.5% increase. The higher the market rate within the punitive interest, the lower the effective value of the benefit.
Percentages under the new regime
| Age of the tax assessment | Interest remission | Penalty remission |
| 1 to 3 months | 75% | 70% |
| 4 to 12 months | 55% | 50% |
| 13 to 18 months | 30% | 30% |
| 19 to 24 months | 15% | 20% |
| Over 24 months | 0% | 0% |
The age of the assessment is calculated from the month of its issuance, which is considered “month 1”. For real estate tax, the period is counted from the month following the due date of the relevant installment.
Penalties under Articles 97 No. 2, first paragraph, and No. 11 of the Chilean Tax Code will continue to be remitted on their total amount, subject to the maximum percentages indicated in the table above.
Below is a brief comparison between both regimes:
| Matter | Previous regime | New policy |
| Basis for remission | Reduction applied to the total punitive interest amount. | Only the additional annual 3.5% component is subject to remission. |
| Main criteria | Age of the debt, in-person or online channel, full payment, payment by folio or in installments. | Age of the tax bill. |
| Interest remission tiers | 1 to 3 months: 80% 4 to 12 months: 75% 13 to 24 months: 73% Over 24 months: 65% | 1 to 3 months: 75% 4 to 12 months: 55% 13 to 18 months: 30% 19 to 24 months: 15% Over 24 months: 0% |
| Over 24 months | Under TGR, remission could reach up to 65% in case of full online payment. | No ordinary remission applies to either interest or penalties. |
| Penalties | Generally followed percentages equivalent to those applicable to interest. | Subject to specific percentages applied to the total amount. |
| Full payment | Incentives for full payment, early payment, and use of online channels. | An additional 5% applies only if multiple outstanding bills are paid and none exceeds 24 months. |
| Payment agreements | Up to 24 installments, depending on compliance behavior, guarantees, down payment, and channel. | Internal rules remain in place, subject to new exclusions. |
| Exclusions | No general exclusion based on background information or pending tax documents requiring justification. | Introduced when background information may allow irregular advantages. Prevents remission |
Why is remission reduced?
The reduction must be understood in the context of the amendment to Article 53 of the Chilean Tax Code. The former interest rate of 1.5% per month or fraction thereof could generate disproportionate surcharges in cases of short delays. The new daily mechanism adjusts interest to the actual duration of the default and, in many cases, results in a lower cost.
The new policy limits remission to the 3.5% penalty increment, while preserving an incentive for timely payment.
New exclusions
It also expands and systematizes the cases in which remission will not be granted. These include taxpayers with pending tax records or tax documents requiring justification that may allow irregular advantages within the tax system.
The scope of this exclusion may be particularly relevant for taxpayers with observations, administrative remarks, or unresolved issues before the SII. As this is a regulatory and sub-statutory restriction, its application may affect the rights recognized in Article 8 bis of the Chilean Tax Code and the Chilean Constitution.
Exclusions for accessing payment agreements are more limited. In addition, except in cases involving bribery convictions, certain restrictions may exceptionally be lifted through a reasoned request before the Regional Directorate of the SII.
What happens to previous circulars?
Following the publication of Supreme Decree No. 437, the SII issued Circular No. 27 of 2026, which instructs the application of the new policy and expressly repeals Circular No. 50 of 2016, together with any contrary instructions, as from the publication of its abstract in the Official Gazette.
Circular No. 43 of 2019 issued by the TGR has not yet been expressly repealed. However, its remission percentages and criteria cease to apply where they are incompatible with the new regulation, while its operational rules on payment agreements should remain in force.
Practical implications
The age of the tax assessment becomes a determining factor. Remission is significant during the first three months, decreases after 12 months, and disappears once 24 months have elapsed. Therefore, before making a payment, entering into a payment agreement, or recognizing a contingent liability, it is necessary to assess the non-remittable base rate, the statutory increment, penalties, the age of each folio, and any applicable exclusions.
Although the new regulation standardizes the criteria applied by the SII and the TGR, it reduces the economic scope of the benefit, making timely regularization directly impact the final amount payable.
For specific questions or further information on this matter, please contact our Tax team.