Annual Income Statement
The Chilean Income Tax Law is the rule that establishes who are the subjects obliged to present the annual income tax return in that country.
Likewise, this return must be filed through Form 22, which was introduced to the Chilean tax system as from 1999, through Resolution N°5944 issued by the Chilean Internal Revenue Service (SII), and which has suffered certain modifications as to its form and content over the years.
The purpose of this article is to clarify certain frequent questions that taxpayers may have regarding this type of return.
Who are the subjects obliged to file the annual income tax return?
According to Article 65 of the Income Tax Law (the Law), these will be those taxpayers that generate taxable income within the first category income, such as companies. Likewise, individuals will also be obligated, provided that they have obtained income greater than 13.5 Annual Tax Unit (UTA).
Who is exempted from the annual income tax return?
Individuals who do not exceed 13.5 UTA in annual taxable income are not obliged to file an annual tax return, nor are those taxpayers whose tax obligation is fulfilled on a monthly basis, such as individuals who obtain salaries or pensions from a single employer.
Likewise, those taxpayers who pay a substitute Single First Category Tax, such as small artisanal miners, supplemental miners, among others, will not be obliged to file a return.
What are the means to file the annual income tax return?
The annual income tax return may be filed through physical means or by electronic transfer through the Internet by means of Form 22.
In case it is filed by physical means, the IRS page provides a link to download said Form to be filled out and filed at the Tax Administration offices.
How do you declare the annual income through Form 22 by electronic means?
To do so, you must enter the SII’s web page, select online services and click on the option “declare income”.
Then, you must indicate the RUT number and the Tax Code, select the tax year to be declared and click on accept.
In this section you will find a proposal of the annual income tax return for the selected year, based on the information of your income, withholding agents, among others, this will be available only from the end of March.
In case the information found in it is correct and does not require any modification, the taxpayer may continue and send it.
In this way, the income tax return will have been filed.
It should also be noted that the income tax return may also be filed with online tax payment, which may be charged to a checking account or credit card, or with electronic bill payment.
In the latter case, there are two options, through payment with a mandate to the bank with a charge to a current account, so although the order is issued online, the confirmation of the payment may take up to 48 hours. Once the financial institution chosen makes this payment, the taxpayer will be granted the Certificate of Receipt of the Income Tax Return.
The second option is with payment at maturity, so those taxpayers who have an active mandate may file the return but indicate that the payment will be made by the bank with a later date.
What is the deadline for taxpayers to file their annual tax return?
The presentation of the return and payment of the annual income tax is due in the month of April, in case it is made by electronic payment in account on April 28 and by online payment on April 30.
How can I check the status of my return?
To do so, you must access the SII’s web page, go to the “online services” option, then click on the “Income Tax Return” option, and in the menu go to the “Consult Income Tax Return Status” option, where you will find information regarding the date of filing, page number and result of the return.
What is the penalty for filing the annual affidavit out of time?
In the case of tax returns that were filed after the established deadlines, a fine of 10% of the tax adjusted by the Consumer Price Index (CPI) will be imposed, when the delay does not exceed 5 months.
After 5 months, the fine will increase by 2% for each month or fraction thereof, but may not exceed 30% of the tax.
In case the return has been filed with a refund, the fine will be between one Monthly Tax Unit and one Annual Tax Unit.
What happens if a balance is generated in favor of the taxpayer?
In case that when filling out the return it is observed that the taxpayer did not generate a tax to be paid, but obtained a balance in his favor, the tax refund may be collected, for which he must leave the data of the means by which he wishes to be made, in Form 22.
As to the means used for the refund, there shall be a check, an electronic transference and a cashier.
It will be possible to verify if you are entitled to it through the SII’s web page. The return date will depend on the date of filing the return, but in general it is done in May.
Is it possible to request an early income tax refund?
Yes, you can request a percentage of early return of the Income Tax, if during the previous year provisional monthly payments were made.
This benefit only applies to MSMEs whose sales in the month of October have varied by 10% or more in relation to the average declared on Form 29 in the last 12 months.