One of the main new developments in this process is the expansion of the number of taxpayers required to declare rental income.
Starting April 1, taxpayers must begin filing their 2025 Income Tax Return. Although there is still more than a month to go, the Internal Revenue Service (SII) has already begun providing key information about the process.
The first point outlined is who is required to file a tax return. This includes individuals with annual income exceeding $10,900,000 (unless it comes from a single employer); those who had more than one employer or payer; those who earned income from professional services and wish to opt for partial coverage of their social security contributions.
It also includes individuals who requested the Solidarity Loan in 2020 and/or 2021, as the corresponding installments are calculated and paid during this tax season. Additionally, all those who started a business in 2024 must file. In the case of companies, all must submit their income tax returns.
What are the new developments?
Regarding affidavits, Christian Delcorto, Tax Consulting and Compliance Partner at CCL Auditores Consultores, highlights as one of the main changes the modifications to Affidavit No. 1835, related to real estate leasing. This now includes “mandataries” (agents) as obligated filers, which is expected to increase the number of taxpayers required to report. Mandataries are individuals authorized to act on behalf of another person. According to the expert, “the SII expects the number of taxpayers required to declare to increase, given that in the previous tax year the number of individuals declaring rental income rose by 356%, from 25,000 in the 2023 tax season to 116,000, with the Treasury collecting approximately US$1.224 billion, that is, US$171 million more than projected.” These include real estate brokers and similar professionals.
According to the SII, when filing a tax return, all income must be considered, including that obtained from leasing and/or usufruct of real estate. “When calculating all income earned during the year, we will also review whether you qualify for exemptions under DFL-2 and determine whether you are required to pay income tax,” the SII states.
There are also changes in other affidavits (Forms 1922, 1948, and 1949), which now include information related to profit distributions charged to the ISIF, a special incentive created by the government for the reconstruction of Valparaíso.
Additionally, the SII has created two new affidavits (Forms 1958 and 1959), with Form 1959 being the most significant, related to the reporting of 50 deposits and/or transfers in current accounts. However, this will come into effect starting July 1, 2025.
Regarding Form 22, the most significant changes relate to its inclusion in presumptive income (new codes) and in the real estate sales section.
Credit for the Purchase of New Homes
This is a benefit that allows individuals who have taken out a mortgage loan for the purchase of a new home for residential use to receive a reduction in taxes payable or a refund, based on the amount paid in mortgage installments. This benefit will be available only until tax year 2029.
For this tax season, the credit amount will correspond to the actual mortgage payments made, with a cap of $1,076,704 (16 UTM as of December 2024).
Note that the amount of the installments includes only principal and interest, excluding other charges such as insurance, fees, or any additional costs agreed upon.
Recalculation of Second Category Tax
This mainly benefits individuals who are employed and have variable monthly salaries, and who may not have received income during one or more months of the year.
According to the SII, when recalculating (i.e., applying the tax rate based on annual income), taxpayers may receive a refund of taxes overpaid in months when income was higher, or when the applied monthly tax rate was higher than what would have resulted from considering total annual income.
Key Dates for Filing Tax Returns
- The 2025 tax filing process begins on March 3, 2025, and ends on June 30.
- March 1: start of submission of Affidavits (DJ Forms).
- March 25: deadline for submitting the affidavit for leased real estate.
- April 1: opening of Form 22 (F22) for income tax filing.
- April 30: deadline for submitting the tax return.
- May 15: last day to amend returns.
Regarding refunds, the SII indicated that if you submit your return between April 1 and April 21, you will receive your refund on May 15.