The IRS detected financial accounts of Chileans in places such as Switzerland and the Cayman Islands.

The Chilean Internal Revenue Service (SII) continues to carry out procedures related to the Repatriation of Capital.

Within the framework of the Tax Compliance Act (or “Anti-evasion” Act) - whose objective is to ensure that everyone pays what they owe - a voluntary and extraordinary procedure is in force for taxpayers to declare assets or income located abroad.

The SII, for example, detected 153,314 financial accounts of Chileans who are located abroad, in places such as Switzerland and the Cayman Islands.

Of these, according to Diario Financiero , 94% are from natural persons and 6% from legal entities, with a current account balance that would amount to US$ 32,579 million.

Capital repatriation targets all types of assets, including movable and immovable property, tangible and intangible, such as shares or rights in companies incorporated abroad, or the right to the benefits of a trust or fiduciary.

It also includes foreign currencies and all types of financial instruments or securities, such as bonds, fund shares, deposits and similar items, which are payable in foreign currency; as well as income from assets (dividends, profits, interest, among others).

In the transitional procedure, taxpayers will be able to regularize their tax situation through the application of a single, substitute tax of 12% on the value of their assets or income.

TALK TO TAX ADVISORS

This week, the Service held an online talk attended by more than 210 tax advisors.

During the event, they were given guidance on the option available to their clients who have assets or income abroad pending taxation in the country, in order to benefit from the capital repatriation process.

As of December 10, the IRS had received 73 declarations of assets and income from abroad pending taxation, for a total amount of declared taxes of $12,063 million (US$ 12.3 million).