Chile launches new tax interest and penalty forgiveness program

Chile's Internal Revenue Service (SII) and the Treasury General of the Republic (TGR) have implemented a new policy that reduces interest and fines on outstanding tax debts. The program, published in the Official Gazette, offers greater condonations the earlier a debt is regularized, applying reductions to interest that exceeds the statutory 3.5% rate. Taxpayers who settle their entire debt may receive an additional 5% discount on incremental interest, provided the debt consists of more than one levy and none are older than 24 months. Applications can be made digitally through the SII or TGR portals, with special requests submitted directly to the Treasury.

The measure aims to encourage faster debt settlement by lowering the cost for individuals and companies, while also standardising the criteria used by the two agencies under article 207 of the Tax Code.