Through Resolution Ex. SII No. 103, the Internal Revenue Service’s Audit Subdirectorate created the Annual Registry on Withholdings made under Articles 42 Nº 1 and 74 Nº 1 of the Income Tax Law and exempts the indicated taxpayers from the obligation to file the Affidavit Form No. 1887.
1. Objective of the regulation
To facilitate taxpayers’ tax compliance, the experience in the different channels, especially the digital ones, is being improved, automating processes, and providing a service that adjusts to the needs with proposals facilitating the execution of their procedures, reducing their compliance costs, and increasing their tax certainty.
In this regard, the tax authority considered it appropriate to create the “Annual Registry on withholdings made pursuant to Articles 42 No. 1 and 74 No. 1 of the Income Tax Law”, for taxpayers obliged to file the Sworn Statement Form No. 1887, which will be prepared by the Internal Revenue Service based on the information contained in the Libro de Remuneración Electrónico – Electronic Remuneration Book (hereinafter, “LRE”) of the Labor Directorate, which will be permanently updated.
2. Use of the information
With the information contained in the Annual Registry in force on March 16 of each year or, when this is not a working day, on the first following working day, regarding the previous year’s background, the Sworn Statement No. 1887 will be generated, and the corresponding obligation will be deemed to be fulfilled. It should be noted that if the taxpayer submits its Sworn Statement No. 1887 in advance, it will be considered for tax purposes.
On the other hand, if the information contained in the LRE is modified by the taxpayer after March 16 of each year, the taxpayer must amend the Affidavit No. 1887 generated from the Annual Record of withholdings made under Articles 42 N°1 and 74 N°1 of the Income Tax Law through the Service’s website, SII.
The regulation states that it will be in force as of the tax year 2022, regarding the operations reported for the business year 2021, and so on thereafter.