1. Taxpayers elegible for the simplified regime set forth in Article 14 Ter
Annual average earned or accrued income arising from sales and services within the taxpayer’s business must not exceed UF 50,000 (approximately USD 2 million) during the last 3 business years prior to entering the simplified regime (if the company has existed for less than 3 business years, the average is calculated considering the years of existence)*3
If the taxpayer chooses to be subject to the simplified regime during the year it starts its activities, its effective capital must not be higher than UF 60,000 (approximately USD 2.4 million).
Taxpayers whose income arising from the activities specified in Article 14 ter, letter A, number 1, letter c, together exceed 35% of the total gross income of the respective business year, are not eligible for this regime.*4
Companies whose paid-up capital is owned in more than 30% by partners or shareholders which are companies that issue stock-exchanged shares or subsidiaries of the latter, are not eligible for this regime.
Only eligible:
Individual entrepreneurs
Limited liability individual entrepreneurs (EIRL)
Communities
Partnerships*1
Companies by shares*2
Conditions
*1. Excluding limited partnerships with share capital (sociedades en comandita por acciones).
*2. Provided they meet with the requirements established in paragraph 6 of Article 14 of the ITL and that they are exclusively composed of natural persons domiciled or resident in Chile, by taxpayers not domiciled nor resident in Chile and/or by companies subject to the Attribution Regime of Article 14 of the ITL.
*3. Income must not exceed UF 60,000 (approximately USD 2.4 million) in one year.
*4. Activities are: (i) any of those described in numbers 1 and 2 of Article 20 of the ITL, although incomes arising from the possession or exploitation of agricultural real estate properties may not be considered for these purposes; (ii) participation in in partnership agreements or joint accounts; and, (iii) possession or holding - under any title - of equity interests and shares in companies or investment funds quotas (income from this type of investment must not exceed 20% of the total gross income of the respective business year).
*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.