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Reactualization of the presumptive Income Tax bases for the mining activity

Through Decree No. 18 of 2022, the Treasury provides for the updating of the amounts that make up the scales contained in the referred...

Through Decree No. 18 of 2022, the Treasury provides for the updating of the amounts that make up the scales contained in the referred articles on the presumptive basis of the mining activity of the Income Tax Law.

1. Updates

According to the aforementioned Decree, the amounts expressed in cents of the U.S. dollar that make up the scales contained in Articles 23 and 34 No. 2, letter c) of the Income Tax Law are updated by 7.0%, according to the last update provided by the exempt decree No. 28, dated February 2, 2021, of the Ministry of Finance, leaving such scales with the following brackets:

A. The scale of rates of IR affectation to small artisanal miners (article 23)

  • 1% if the international price of copper, based on which the mineral purchase rate is calculated, does not exceed 351.37 US cents per pound;
  • 2% if the international price of copper, based on which the purchase price of the minerals is calculated, exceeds 351.37 cents per pound and does not exceed 451.81 cents per pound; and
  • 4% if the international price of copper, based on which the mineral purchase rate is calculated, exceeds 451.81 cents per pound.

B. Scale on the determination of the Presumptive Income of the first category tax in those of the mining activity (Article 34 No. 2 letter c):

It is presumed as of right that the net taxable income of the mining activity, including in it the activity of exploitation of mineral beneficiation plants, provided that the volume of minerals treated comes in more than 50% from the belonging exploited by the same taxpayer, shall be the one resulting from applying on the annual net sales of mining products, the following scale:

  • 4% if the average price per pound of copper in the respective year or fiscal year does not exceed 331.23 cents;
  • 6% if the average price per pound of copper in the respective year or fiscal year exceeds 331.23 cents of a dollar and does not exceed 351.37 cents of a dollar;
  • 10% if the average price per pound of copper in the respective year or fiscal year exceeds 351.37 US cents and does not exceed 401.54 US cents;
  • 15% if the average price per pound of copper in the respective year or fiscal year exceeds 401.54 cents and does not exceed 451.81 cents; and
  • 20% if the average price per pound of copper in the respective year or fiscal year exceeds 451.81 cents.

2. Cause of variations

These variations are because, as reported by the Central Bank of Chile in Official Communication No. 37, dated January 17, 2022, the Consumer Price Index of the United States of America had an increase of 7.0% (seven-point zero percent) during the year 2021.

Source: Diario Oficial 10/02/22

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