LAW NO. 20.263 PERFECTS THE TAX AND CUSTOMS ADMINISTRATION TO FACILITATE TAX COMPLIANCE OF TAXPAYERS. The following amendments are made to the text of the Tax Code, contained in Article 1 of Decree-Law No 830 of 1974: (1) Substitute Article 18, for the following: " Article 18.-Set for all tax purposes, the following rules for keeping accounts, filing tax returns and making your payment: 1) Taxpayers keep accounts, submit their declarations and pay the taxes that correspond, in national currency. (2) Notwithstanding the foregoing, the Service may authorise, on the basis of a reasoned decision, that certain taxpayers or groups of taxpayers keep their accounts in foreign currency, in the following cases: (a) Where the nature, volume, (a) habitability or other characteristics of its foreign trade operations in foreign currency justifies it. (b) Where their capital has been contributed from abroad or their debts have been incurred abroad in the majority in foreign currency. (c) Where a particular foreign currency has a fundamental influence on the prices of the goods or services of the taxpayer's spin. (d) Where the taxpayer is a subsidiary or permanent establishment of another company or company that determines its results for tax purposes in foreign currency, provided that its activities are carried out without a significant degree of autonomy or as an extension of the activities of the parent or company. Such authorisation shall apply from the first financial year of the taxpayer, where he so requests in the declaration referred to in Article 68, or from the commercial year following the date of submission of the application, in other cases. Taxpayers who accept the provisions of this number shall keep their accounts in the form authorized for at least two consecutive years, and may request their exclusion from the said system for the following commercial years. at the end of the two-year period. Such application shall be lodged until the last working day of October of each year. The decision on this application shall apply from the commercial year following the year of the filing and in respect of the taxes to be paid for that commercial year and the following. The Service may revoke, by way of resolution, the authorisations referred to in this issue, where the respective contributors no longer meet in the cases established therein. The revocation shall apply to the commercial year following the notification of the respective decision to the taxpayer, from which the accounting in national currency shall be taken. This authorization shall be granted provided that, in addition to the causes referred to by this number, the basis on which the taxes are to be paid is not diminished or distorted. (3) The Service shall also be entitled to: (a) Authorise the taxpayers referred to in number (2), declare all or some of the taxes which affect them in the foreign currency in which they bear their accounts. In this case, the payment of such taxes must be made in national currency, according to the exchange rate prevailing at the date of payment. b) Authorize that certain taxpayers or groups of taxpayers pay all or some of the taxes, adjustments, interest and fines that affect them in foreign currency. In the case of taxpayers declaring such taxes in national currency, the foreign currency payment shall be made in accordance with the exchange rate prevailing at the date of payment. The provisions of Article 53 (1) shall not apply to taxpayers who are allowed to declare certain taxes in foreign currency in respect of the taxes included in that authorization. The Treasurer General of the Republic may require or authorize that taxpayers without domicile or residence in Chile pay in foreign currency the tax established by law No 17.235, and in their case the adjustments, interests and fines that are applicable. It may also require or authorize the payment in foreign currency of taxes or other tax obligations, other than those of the Internal Revenue Service, and of the municipal obligations collected or collected by the Treasury. The obligations referred to in this paragraph shall be met in foreign currency by applying the exchange rate prevailing at the date of payment. However, the Service may require the taxpayers authorized in accordance with the number 2) to pay certain taxes in the same currency in which they bear their accounts. It may also require certain taxpayers or groups of taxpayers to pay taxes in the same currency in which they obtain the income or carry out the taxable transactions. The decisions to be taken in accordance with this number shall determine, as appropriate, the tax period to which the taxpayer shall be obliged to declare and, or pay his taxes and surcharges in accordance with the requirement or authorization. the foreign currency in which the declaration is required or authorized, or the payment and tax or tax or municipal obligations to which one or the other is extended. In the case of taxpayers who bear their accounts, declare and pay certain taxes in foreign currency, in accordance with this number, the Service shall practice the liquidation and, or the rotation of such taxes and the surcharges corresponding to the the respective foreign currency. As soon as applicable, surcharges established in national currency shall be converted into foreign currency in accordance with the exchange rate prevailing at the date of settlement and, or rotation. In the case of taxpayers who carry their accounts and declare certain taxes in foreign currency but must pay them in national currency, without prejudice to the fact that taxes and surcharges are determined in the respective foreign currency, the rotation shall be expressed in national currency, according to the exchange rate prevailing at the date of the turn. In respect of those taxpayers to whom only the payment of certain taxes in foreign currency is required or authorized, without prejudice to the corresponding taxes and surcharges to be determined in national currency, the respective rotation expressed in the foreign currency authorised or required according to the exchange rate prevailing at the date of the turnaround. In cases where the tax has been due in foreign currency, the fines laid down in the first subparagraph of Article 97 (2) and Article 97 (11) shall be determined in the same foreign currency in which the payment was made. The Service or the Treasurer General of the Republic, as appropriate, may revoke, by way of resolution, the requirements or authorizations referred to in this numeral, when the characteristics of the respective contributors have changed. who have motivated them. The revocation shall govern the amounts to be paid from the period following the notification to the taxpayer of the respective decision. However, the Service or the Treasurer General of the Republic may, where appropriate, only require or authorize the declaration and, or the payment of certain taxes in the respective foreign currencies, when on the occasion of such authorizations or requirements the financial administration of the State is not affected. This circumstance must be qualified by resolutions of a general nature by the Budget Directorate of the Ministry of Finance. 4) If, in accordance with this Article, taxes have been paid in any of the currencies (a) to be authorised, the refunds to be made in compliance with the rulings of the claims which are lodged in accordance with Articles 123 and following, such as those provided for in accordance with Article 126, shall be carried out in the foreign currency in which they were paid, if so requested by the person concerned. Likewise, it must be done in those cases where, having paid the taxes or other tax or municipal obligations in foreign currency, the refund of the same is ordered in accordance with the provisions of other legal provisions. When the taxpayer does not request the return of taxes or other tax or municipal obligations, in foreign currency, they will be returned in national currency considering the exchange rate prevailing at the date of the respective resolution. For these purposes no adjustment shall be applied which is calculated on the basis of the variation of the Consumer Price Index. 5) For the purposes of this article, any foreign currency shall be considered to be any of the foreign currencies of which exchange and parity is set by the Central Bank of Chile for the purposes of number 6. Chapter I of the Compendium of International Change Standards or the one that the Bank establishes in its replacement. Where it is appropriate to determine the exchange rate of the national currency to a given foreign currency and vice versa, the exchange rate shall be deemed to be the value reported for the respective date by the Central Bank of Chile according to the standard (2) Amend Article 38, as follows: (a) Add in the first subparagraph, between the term "Treasury" and "by means" of the phrase "in national or foreign currency, as appropriate in accordance with the provisions of Article 18,". (b) Add in the second subparagraph, between the expression "Fisco" and the point followed (.), the phrase ", limitation that shall not apply to debit, credit or other cards of equal nature issued in the ext ranjero. " (3) Intercalase in Article 47, following the word "payment", the first time appearing in the standard, the phrase " in accordance with the provisions of Article 38.2, preceded by a comma (,). (4) Intercalase, in the second paragraph of Article 68, between the words "alienation," and "even, the following sentence:" or income from those established by the Internal Revenue Service by resolution, ". Article 2.-The following amendments are made to the Income Tax Law contained in Article 1 of Decree Law No 824, 1974: 1) Intercalase in Article 65 (1), between the words "titles," and "even", the following sentence: "or income from those established by the Internal Revenue Service by resolution". (2) Intercalase in the second indent of Article 68, between the words "transferable" and "still", the following sentence: " or income of those who establish the Internal Revenue Service by resolution, '. Article 3.-The following amendments are introduced in the decree with force of law No. 30, 2004, of the Ministry of Finance, which approved the recast, coordinated and systematized text of the decree with force of Law No. 213, of 1953, on Ordinance (1) The third paragraph of Article 58 is replaced by the following: " The value of the sum to be paid shall be settled at the exchange rate prevailing at the date of the payment which the Central Bank of the Central Bank of the European Central Bank shall establish for this purpose. Chile. Taxpayers who are obliged or authorized to pay their taxes or other tax obligations in foreign currency in accordance with Article 18 of the Tax Code shall pay the sums referred to in this Article in that currency. Article 95 is replaced by the following: "The sums to be paid shall be determined with the exchange rate in force at the date of the payment." 2. For this purpose, for this purpose, the Central Bank of Chile should be set up. Taxpayers who are obliged or authorised to pay their taxes or other tax obligations in foreign currency in accordance with Article 18 of the Tax Code shall pay the sums referred to in this Article in that currency, according to the exchange rate in force at the date of payment, where appropriate, determined by the Bank. "3) Add in Article 100, following the separate point (.), which becomes the following, the following sentence:" In the case of the taxpayers who are obliged or authorised to pay their taxes or other tax obligations in currency In accordance with Article 18 of the Tax Code, non-payment documents, once reliquidados, shall be expressed in the foreign currency corresponding to the exchange rate in force at the date of (4) Replace the first paragraph of Article 101 by the following: The payment of duties, taxes, fees, charges, surcharges, fines and other charges in national currency shall be made in cash, voucher, cheque, bank letter or other means authorized by law, before the Treasury Department or before any bank or institution to be pointed out by the Ministry of Finance. Also, in the case of taxpayers authorized or obliged to pay their taxes or other tax obligations in foreign currency in accordance with Article 18 of the Tax Code, the payment referred to in this Article shall be made in the currency A foreign currency which corresponds to, or is a voucher, cheque, bank letter or other means authorised by law, expressed in that currency, in accordance with the exchange rate in force at the date of payment, where appropriate. " 5) Add the following Article 135 bis: " Article 1313a.-If, in accordance with Article 95, the rights were paid customs duties in any of the authorized foreign currencies, the returns which are made in compliance with the rulings of the claims which are brought in accordance with Article 117 et seq. of this Ordinance, such as those provided for in the In accordance with Articles 130 to 135 precedents, it shall be ordered to pay in the foreign currency in which the customs duties have been paid if the person concerned so requests. In the same way, it must be carried out in cases where, having paid the respective customs duties in foreign currency, the refund of the customs duties is ordered in accordance with the terms of a trade agreement or in accordance with the exercised by the customs authority in accordance with the law. ' Article 4 °.-Eliminate the number (3) of point (f) of Article 9 ° of the decree with force of law No. 1, 1994, of the Ministry of Finance, on the Organic Statute of the Service of the Treasury. Article 5.-Eliminate, in articles 1 °, 2 ° and 4 ° of the decree with force of Law No. 1, 2002, of the Ministry of Finance, which establishes an allocation of stimulus to the staff of the Service of the Treasury, the expressions "in national currency". Article 6.-Introduces the following amendments to Law No. 18,634, which establishes a system of deferred payment of customs duties, tax credit and other benefits of a tax character that indicates: 1. in point (a) of the first paragraph of Article 10, the following sentence shall be added after the separate point which becomes a point: " notwithstanding the foregoing, in respect of taxpayers who are obliged or authorized to pay their taxes or other tax obligations in foreign currency as provided for in Article 18 of the Tax Code, such shares shall be paid in the respective foreign currency, according to the exchange rate prevailing at the date of payment, where appropriate. " 2) Amend Article 16 as follows: (a) In the second subparagraph, following the end point, which becomes a point, the following sentence is added: " In the case of taxpayers who are obliged or authorized to pay their taxes or other tax obligations in foreign currency in accordance with Article 18 of the Tax Code, such notes shall be expressed in the respective foreign currency, at the exchange rate in force at the date of invoice, plus the interest shown. " (b) In the third subparagraph, following the item Finally, the following sentence was added: " In the case of the taxpayers who are obliged to or authorized to pay their taxes or other tax obligations in foreign currency in accordance with the provisions of Article 18 of the Tax Code, the notes and the criminal interest in the case of arrears shall be paid in the respective foreign currency, at the rate of the change in force at the due date. ' Article 7.-Interpretation of Article 2 (2) of Law No 20.259, in the sense that, at the time of publication, the proportional charges laid down in Articles 1, 3), 2 and 3 of Decree Law No 3,475 of 1980 are and have been 0,1% for each month or fraction of the month, with a maximum rate of 1,2%, in respect of those documents or transactions with a maturity date, and of 0,5% in respect of those documents in the view or without maturity. Such fees are and have been applicable in respect of documents and transactions which are issued, subscribed, granted, extended, renewed, or, in general, the taxes of which are due on 25 March 2008. Also, replace in numbers 1), 2) and 3) of the sole article of Law No 20.130, to count from the date of publication of Law No 20,259, the phrase "January 1, 2009", by the following "25 March 2008". Article 8.-Amend the single article of Law No. 20.221 which extended the period for granting facilities for payment of taxes, as follows: 1) Replace the phrase "30 June 2007" with the following: "31 March 2008". 2) Modify the second time the expression .six months appears in the text. by the following: "seven months". Transitional provisions Article 1 Transitional first.-Taxpayers may apply for authorization to keep accounts in foreign currency in accordance with Article 18 of the Tax Code, with application per year 2008, until the last working day of May 2008. Second transitional article.-The provisions of Article 8 of this Law shall begin to apply on 1 April 2008. ' And because I have had to approve and sanction it; therefore, promulgate and take effect as the Law of the Republic. Santiago, April 30, 2008.-MICHELLE BACHELET, President of the Republic.-Andres Velasco Branes, Minister of Finance. What I transcribe to you for your knowledge.-Salute intently to you, Maria Olivia Recart Herrera, Deputy Finance Secretary.