On July 1, 2024, the law that creates the Temporary Emergency Fund for fires and establishes other measures for the reconstruction of ValparaÃso (“Lawâ€) came into force. This law contemplates the creation of a new Substitute Tax for Final Taxes (“ISFUTâ€), which allows the payment of final taxes (i.e., Global Complementary Tax and Additional Tax) to be replaced by a single, fixed-rate tax, with certain special characteristics that differentiate it from the versions approved in previous years.
The new ISFUT is applicable to both First Category Tax payers subject to the general regime and to the Pro-Pyme regime, under the following general characteristics:
General Regime
- Taxpayers who, at the end of the 2023 business year, maintain a balance of accumulated taxable profits in the RAI registry (including those generated before 2017 maintained in the STUT registry at the same date), will be able to benefit from the new ISFUT at a rate of 12%, without the right to credit, on part or all of said balance.
- The First Category Tax credit associated with profits covered by ISFUT is lost.
Pro-SME regime
- Companies subject to the Pro-Pyme regime will be able to benefit from the ISFUT at a rate of 30%, but with the right to credit for the First Category Tax in proportion to the amounts covered, with the balance recorded in the SAC registry as of December 31, 2023 as a limit.
- If the credit is imputed, that amount must be deducted from the SAC record.
For both the general regime and the Pro-Pyme regime, the distribution of profits covered by the ISFUT will not be taxed again at the level of the final taxpayer, and may be distributed without being subject to the imputation order in force in the LIR, with preference.
The option to benefit from this new ISFUT may be exercised until the last banking business day of January 2025.
