Compliance
Chile’s New Policy on Interest & Penalty Condonation: What Businesses Need to Know
Chile’s SII has implemented a revamped policy for condonación of interest and penalties, offering more favorable terms for taxpayers with outstanding obligations as of mid-2026.
By NomadicTax Research Team • 5-8 min read • August 14, 2026
## Background: Why the Policy Changed
In line with reforms to Article 207 of the Chilean Código Tributario, the Servicio de Impuestos Internos (SII) together with Tesorería General de la República (TGR) established a **new policy** effective **June 18, 2026** to condone interest and penalties under specific conditions. The aim is to ease compliance and help taxpayers catch up on obligations. ([sii.cl](https://www.sii.cl/noticias/2026/220626noti01smn.htm?utm_source=openai))
## Terms & Conditions of Condoned Obligations
- Applies to **debt obligations** arising from delayed filings or payments—not including fines for non-tax offenses or penalties stemming from negligence. ([sii.cl](https://www.sii.cl/noticias/2026/220626noti01smn.htm?utm_source=openai))
- More favorable **rates of condonation** for those who pay sooner, show good compliance history, or meet specific criteria (e.g., financial hardship). The exact rate depends on availability and negotiation. ([sii.cl](https://www.sii.cl/noticias/2026/220626noti01smn.htm?utm_source=openai))
- For debts already assessed, taxpayers may make a formal request using **Formulario 2667** or through an administrative petition on sii.cl. In some cases, a **presencial** application is required. ([sii.cl](https://www.sii.cl/noticias/2026/220626noti01smn.htm?utm_source=openai))
## Practical Steps for Businesses & Individuals
1. **Read your debt notices** to see if penalties, interest, or fines are involved. Determine which can be condoned under the new policy.
2. **Document circumstances**—if delayed due to disasters, business disruptions, or other unavoidable events, gather proof.
3. **Submit the required form (Formulario 2667)** through SII or in person—ensure accuracy. Deadlines are key.
4. **Plan for payment** of the reduced balances; even with condonation, a portion must be settled to unlock relief.
5. **Review future compliance**—one condonation doesn’t prevent future liabilities; improving billing, invoicing, tax recordkeeping matters.
## Example Scenarios
- **Small Retailer**: Owed VAT payments and late interest. Applies minimally after noticing missed payments for 2025. With a clean prior history, qualifies for favorable condonation — may only have to pay 60-70% of total debt.
- **Service Freelancer**: Delay in second-quarter income tax payment due to illness. Submits request, pays base tax, eligible for relief on interest and penalties if meets hardship criteria.
## Why Register Early & Maintain Compliance
- Avoid large accruals of interest that may be harder to reduce later.
- Keeping up with monthly and annual filings strengthens eligibility for condonation where applicable.
- Transparent financials help, especially for freelancers, SMEs, and those with cross-border income.
Chile’s condonation policy is an opportunity to clear old debts under more forgiving terms. The best strategy is to act quickly, document carefully, and align future compliance to avoid recurring debts.