Through Law No. 21,133 of February 2, 2019, the withholding rate that must be applied by First Category taxpayers obliged to keep complete accounting that pay income of No. 2 of article 42 of the Income Tax Law (professional fees) up to a rate of 17%.

As a result of the aforementioned modification, due to an error in the computer systems of the Internal Revenue Services (SII) in 2020, directors or directors were prevented from issuing electronic tickets for their allowances with a 10% retention rate (which was amended by Law No. 21,133), for which they were forced to recharge 10.75% on the respective documents as if it were other professional services.

In this context, the Barros & Errázuriz Tax team developed a report with the main suggestions for our clients in this regard.

To review the full report, click here