One of the changes is that affected taxpayers may file and/or pay their monthly tax obligations (Forms 29 “Monthly Declaration and Simultaneous Payment of Taxes” and 50 “Monthly Declaration and Simultaneous Payment of Taxes,” in the cases defined by the Resolution) corresponding to January 2024, until March 28.
Read the full article in La Tercera – Pulso.
The government has introduced a series of tax relief measures for those affected by the fires in the Valparaíso Region. One of these measures grants forgiveness of penalties and interest on VAT and other monthly taxes paid after the deadline for those impacted by the disaster.
To implement this, the Internal Revenue Service (SII) issued Exempt Resolution No. 21 in February 2024, which provides waivers of interest and penalties associated with Monthly Taxes. Alfredo Zanni, Tax Manager at CCL Auditores Consultores, explains the scope of these benefits.
Who benefits?
-Taxpayers in the municipalities of Viña del Mar, Quilpué, Limache, and Villa Alemana.
Until when is the deadline for paying tax obligations extended?
-They may file and/or pay their monthly tax obligations (Forms 29 “Monthly Declaration and Simultaneous Payment of Taxes” and 50 “Monthly Declaration and Simultaneous Payment of Taxes,” in the cases defined by the Resolution) corresponding to January 2024, until March 28, 2024.
How will the initiative be applied?
-Automatically, once taxpayers submit their respective returns online at sii.cl.
When does it come into force?
-From the date of its publication in the Official Gazette.
Expenses and Donations
The SII circular also provides instructions on the tax treatment of expenses and donations associated with catastrophic events, as well as deadlines and procedures for reporting inventory losses and the loss or accidental destruction of accounting books and other documents.
First, the expert explains that regarding expenses incurred by companies to maintain their economic activities, as well as measures adopted to protect the health of workers and third parties, the following expenditures may be deducted as tax expenses: amounts incurred, whether voluntary or mandatory, aimed at preventing, containing, or reducing the spread of the fires.
Another category includes expenditures aimed at mitigating or alleviating their effects and generally safeguarding the interests of the business, such as protecting current or future income and supporting employees, including the payment of wages even if they were unable to attend work due to force majeure or other causes related to the fires.
Other examples of tax-deductible expenses include the acquisition of items such as masks, medications, medical devices, clothing or specialized equipment, toilet paper, tissues, gloves, medical supplies, water, shovels, hoses, fire extinguishers, fire retardants, among others.
The expert emphasizes that “the above applies generally, regardless of the type of business activity (industrial, commercial, extractive, etc.).”
Likewise, the benefit of qualifying for these donations consists of deducting their value from the taxable base of income tax. In the case of in-kind donations made by a corporate taxpayer (companies), “the tax cost of such goods will be considered. Meanwhile, if in-kind donations are made by individuals subject to Second Category Tax (IUSC, employees) or Global Complementary Tax (IGC, independent workers or individuals earning other types of income), the adjusted acquisition value of such goods will be considered,” he concludes.