Introducing the new identity of NSS.
Having assets outside of Chile that are undeclared to the SII (Chilean Internal Revenue Service) is more common than openly admitted. The Reconstruction Law opens a window to regularize this situation by paying a limited, one-time tax for a restricted period.
Here's how it works, how much it costs, what protection it offers, and what's excluded.
It's a voluntary regularization system: the taxpayer declares assets, accounts, or investments held abroad that were previously undeclared to the SII, and pays a single, substitute tax on their value. In return, civil, criminal, and tax liability associated with these assets is extinguished. This window of opportunity is available for 12 months from the law's publication.
The logic is twofold. On one hand, the State brings forward revenue collection that might otherwise never materialize and integrates these capitals into the formal system. On the other, it seeks to incorporate assets currently off the radar, where they are neither taxed nor circulate in the local economy. For the taxpayer, the appeal is symmetrical: a limited and known rate in exchange for resolving a liability that, if it came to light through other means, would cost considerably more.
The rate depends on what is done with the assets:
Example. An investment portfolio abroad valued at $1,000 million pays $100 million under the general rule. If these funds actually enter Chile and are maintained for five years, the cost drops to $70 million. In return, the assets are regularized and free from the liability they previously carried.
The regularization extinguishes civil, criminal, and tax liability linked to the declared assets. For those who held undeclared assets, this certainty is the true value of the measure: it eliminates the risk of a future audit with consequences far more expensive than the single tax.
It's worth considering the contrast. An audit that detects undeclared assets can result in taxes owed, interest, fines, and, depending on the case, criminal tax liability. Faced with that scenario, a single tax of 10% or 7% that extinguishes these liabilities is, for many, a risk management decision rather than a savings decision.
In general terms, the taxpayer files a declaration with the SII identifying the assets, their value, and their origin, and pays the single tax within the deadline. The details—forms, supporting documentation, and method for proving legitimate origin—will be set by the SII via resolution once the law is published. Having that documentation organized beforehand is what allows for quick action when the window opens, instead of improvising as the deadline approaches.
The benefit does not cover everything. Assets from countries included in the FATF list for money laundering and other illicit activities are excluded, as are resources of illicit origin in general. Regularization is a way to organize legitimate undeclared assets, not to launder funds of criminal origin.
The bill is not yet law. It is in the Senate, in its second reading. Deadlines run from its publication in the Official Gazette, not from today.
It's a window, not a permanent regime. The 12 months run from the publication date. For those with undeclared assets, this is likely the last opportunity to regularize at this cost; the cost of not doing so, if the SII detects the situation, is always higher.
The declaration is key. The declared value, origin, and nature of the assets are subject to review. It is advisable to thoroughly document the lawful origin before submitting.
This content is for informational purposes only and does not replace advice on your specific case.
12 months from the publication of the law in the Official Gazette.
A single tax of 10% on the value of the assets, or 7% if they are effectively brought into Chile and maintained for at least 5 years.
Civil, criminal, and tax liability associated with the declared assets is extinguished, closing the risk of future audits.
No. Assets originating from countries on the FATF list and those of illicit origin are excluded.