Chile’s Internal Revenue Service (SII) has made form N°1920 available to taxpayers who wish to use the Voluntary Declaration of Assets or Income Abroad System. This option, framed in the New Tax Compliance Law, also known as Law No. 21.713, allows regularizing goods, foreign currency, or income that has not been previously declared in Chile.
Interested parties may access the form through the official portal sii.cl. This form allows the repatriation of capital through a single and substitute tax that is applied at a rate of 12% on the value of the assets or income, a figure that the taxpayer himself must determine.
As of November 1, users will be required to file electronically, in addition to Form N°1920, an “Inventory of assets and income”. They will also be required to provide documentation proving the ownership of the goods, their origin and traceability, the date of acquisition, and any expenses or consumption associated with these incomes during their possession. They must also report any changes in the ownership of the assets since their acquisition.
If the taxpayer does not have all the required information when filing the tax return, it can be sent later. They will have six months to submit documentation related to Mandates, Trusts, Trusteeships, and indirect ownership of assets in Chile. In comparison, the term for the other inventory sections will be four months.
Once the form has been submitted and all the established requirements have been met, the SII will generate, within five working days, the liquidation of the single and substitute tax, which will apply to the declared income or assets. This tax may be paid in Chilean pesos, U.S. dollars, or euros.
For further information, interested parties may consult the Capital Repatriation Portal here.