New Taxation Regime for Companies and Their Owners: General Regime, Special Regime (SMEs), and Tax Transparency Regime (2020)

Author: Christian Aste Mejías

The author examines the First Category Tax (FCT) applicable to companies and the taxation of their owners through a highly pedagogical approach. After outlining the evolution of the legislation and the principles underlying Chile’s tax system, the book focuses on a detailed analysis of how companies determine their taxable income.

It begins by examining each component of the tax base, discussing the relevant administrative and judicial precedents applicable to each element. The analysis is reinforced with practical examples and exercises.

Once the tax base for the First Category Tax (FCT) has been established, the author distinguishes between the General Tax Regime set forth in Article 14(A) of the Income Tax Law (ITL) and the SME Regime provided under Article 14(D) of the same law. The book also addresses the Tax Transparency Regime, which is available as an alternative within the SME framework.

Finally, the author analyzes the taxation of business owners, the tax credits that companies may offset against the First Category Tax, and the transitional provisions governing equity (capital propio), instant depreciation, and the substitute tax on the Taxable Profits Fund (FUT).

Available in the BCN Catalog, Library of the National Congress of Chile