1. Is the seller a CT taxpayer based on effective income or did it dispose the property in favor of a related party?
Ordinary income
(CT + Final Taxes)
Yes No
Did the seller acquire the property prior to year 2004?
Prior to the Tax Reform:
Generally a non taxable income
Yes No
Did the seller acquire the property prior to September 29, 2014? No
Yes a
TAX COST DETERMINATION
Adjusted tax cost + improvements informed to the IRS
Adjusted tax cost + improvements informed to the IRS
Market value as of September 29, 2014
Adjusted 2017
tax appraisal
Has the seller owned the property for more than 1 year, or for more than 4 years in case of apartments sales per floors or land subdivisions?
Final Taxes (on a perceived or accrued basis, at its election) + settlement option in the case of GCT No
Yes
Non taxable income
Does the accumulated capital gain exceed UF 8,000 (approximately USD 300,000)? No
Yes
Capital gain subject to WHT (on a perceived or accrued basis, at its election), creditable against IDT
Is the seller a Chilean resident? No
Yes
Capital gain creditable against IDT, at election:
GCT (on a perceived or accrued basis, at its election) + settlement option
Substitution tax at a 10% rate (on a perceived basis)
*The content of this document is provided by Carey y Cía. For educational and informational purposes only and is not intended to be exact or complete, and should not be relied on as a substitute for legal advice. Carey y Cía. is not responsible for any consequences resulting from the action, lack of action or decision regarding the information contained in this publication.

2. Notes:
This diagram includes the amendments introduced by the Tax Reform Simplification Law No. 20,899.
Tax treatment applicable to the disposal of real estate properties located in Chile made by natural persons as of 2017.
Capital gain subject to taxes is determined by the difference between the tax cost and the sale price.
The use as a tax cost of the market value as of September 29, 2014 requires an assessment that must be reported to the IRS until June 30, 2016.
Settlement is an option to distribute the capital gain in the exercises in which the property was owned, up to a maximum of 10 years.
The acquisition date is the date of registration in the Real Estate Registry (rulings No. 2,398/2011 and No. 209/2012).
The IDT credit equals the proportion of the tax paid that represents the value of the property in relation to the total allocation.
Abbreviations:
CT = Corporate Tax.
Final Taxes = GCT or WHT.
GCT = Global Complementary Tax.
IDT = Inheritance and Donations Tax.
UF = Unidad de Fomento.
WHT = Withholding Tax.