Among other changes, the minimum income threshold requiring non-profit organizations to report information to the SII has been reduced from UF 12,000 to UF 4,000, along with updates to child support payment reporting through a series of changes in taxpayers’ sworn statements. Experts recommend filing between the third and fourth week of April.
Read the full article in La Tercera – Pulso.
The Internal Revenue Service (SII) has launched a new process for submitting sworn statements (DDJJs) ahead of the 2024 Tax Filing Season. This allows the SII to obtain the necessary information to prepare the income tax return proposal that it offers to each taxpayer starting in April.
According to the SII, the minimum income threshold requiring non-profit organizations to report information has been reduced from UF 12,000 to UF 4,000. This includes reporting items such as income, expenses, and other relevant data through Form DJ 1945. This change expands the universe of non-profit organizations required to file this declaration. Additionally, all non-profit organizations receiving foreign donations exceeding USD 10,000 must also file this declaration.
Gonzalo Ferraz de Andrade, tax attorney at Arteaga Gorziglia, explains that “this change is mainly aimed at requiring a higher level of transparency from non-profit organizations in order to improve oversight of their tax compliance and the use of the funds they manage.”
According to the specialist, “the reason for these changes is quite clear: recent developments related to cases of alleged fraud and misuse of public resources, which require us as a society to raise compliance and transparency standards for these types of entities.”
Christian Delcorto, Partner of Consulting and Tax Compliance at CCL Auditores Consultores, comments that “basically, because the SII wants to know who is behind foundations following last year’s scandals.”
Another change relates to the effective payment of child support, through a series of modifications in taxpayers’ sworn statements. “The ‘Tax ID (RUT) of the participant or contributor’ must be included, clarifying that the contributor or saver must always be identified, even if the funds are received by the claimant of the child support. This aims to provide greater traceability of funds and movements of child support debtors and facilitate their collection,” explains Ferraz de Andrade.
Delcorto adds that “regarding parental responsibility, since organizations and companies must withhold or pay unpaid child support, this is a positive change, as it expands the pool of withholding agents in order to assist minors with unpaid support. This is why several sworn statements were modified to include these new beneficiaries.”
Another modification refers to leased real estate. The objective of this change is to update reporting obligations related to the rental of agricultural and non-agricultural real estate, expanding the scope of transactions covered without requiring a minimum assessed value threshold, which will allow for greater oversight of rental income taxation.
In this regard, Delcorto explains that this year, “the SII eliminated the CLP 40 million assessed value requirement that previously applied for tenants and intermediaries involved in rental transactions to file Form DDJJ 1835. Therefore, it is expected that the SII will increase the amount of information on rental income in this tax year.”
In that context, he states that “individual taxpayers should review whether they still qualify for the benefit of treating rental income from their first two properties as non-taxable income under DFL2 provisions. Therefore, such rental income should not be reported in the annual Form F22, and taxpayers are encouraged to review their individual situation.”
Delcorto recommends that taxpayers file between the third and fourth week of April, even if this delays receiving a refund. He notes that “it is common for companies to amend their sworn statements, which may change the information considered by the SII regarding an individual. This can lead to inconsistencies that may result in adjustments, penalties, and interest if the individual receives a higher refund than they are entitled to due to changes in information provided by withholding agents.”