Compliance
How Chile’s Interest & Penalty Condonations Are Easing Tax Compliance in 2026
Chile has launched more flexible policies for condoning interest and penalties on overdue taxes to draw taxpayers back into compliance. Here’s what you need to know.
By NomadicTax Research Team • 5-8 min read • September 16, 2026
## What Is the New Policy?
As of **June 18, 2026**, Chile’s SII (Servicio de Impuestos Internos), in coordination with TGR (Tesorería General de la República), implemented a **new policy** to **condone (reduce)** both interest and penalties for delayed tax obligations. ([sii.cl](https://www.sii.cl/noticias/2026/220626noti01smn.htm?utm_source=openai))
The policy aligns with Article 207 of the Chilean Tax Code, establishing graduated condonation rates depending on **delay duration** in payment or under-reporting. ([sii.cl](https://www.sii.cl/noticias/2026/220626noti01smn.htm?utm_source=openai))
## Rate Table & Key Details
| Delay Period | Interest Increment Condone Rate | Penalties or Multas Condoned |
|--------------|-------------------------------------|-------------------------------|
| 1 to 3 months | 75% of excess interest above 3.5% | 70% of penalties |
| 4 to 12 months | 55% | 50% |
| 13 to 18 months| 30% | 30% |
| 19 to 24 months| 15% | 20% |
| More than 24 months| 0% | 0% |
Additionally, if a taxpayer **pays the entire debt** and it includes more than one installment (giro) with no single installment more than 24 months old, an **additional benefit** applies, through TGR. Automatic procedures exist via sii.cl or tgr.cl unless exclusions apply. ([sii.cl](https://www.sii.cl/noticias/2026/220626noti01smn.htm?utm_source=openai))
## Who Benefits & What’s Excluded
**Who qualifies:**
- Any Chilean taxpayer with outstanding tax debts or late tax returns, including obligations for VAT, monthly taxes, etc.
- Individuals and companies falling under ordinary monthly, quarterly, or annual obligations.
**Exclusions:**
- Debts purely for fines/multas without tax base.
- Debts arising from penalties caused by noncompliance for which taxpayer is responsible beyond delay.
- Single giros older than 24 months in isolation may be excluded from extra benefits.
## Why this matters for Tax Planning & Compliance
- Encourages taxpayers to settle their tax outstanding dues without burdens of full interest/penalties if they act quickly.
- Provides a window of relief for small businesses and individuals who may have slipped behind—opportunity to normalize status with better terms.
- Could reduce avoidance of compliance and shadow economies.
- Allows better cash flow planning: knowing thresholds and timing of penalties incentivizes prompt action.
## Practical Steps to Leverage the Policy
1. **Inventory all outstanding obligations**: Identify debts, determine date of issuance for each giro.
2. **Calculate elapsed time**: Compare each giro’s issue date against today to see which bracket it falls into.
3. **Access automated condonation benefits online**, via sii.cl or tgr.cl when permissible. For excluded cases, prepare Form 2667 or administrative petition.
4. **If possible, pay in full before 24 months lapse** for extra benefit.
5. **Retain all documentation** of obligations and payments made—they may be required in audits.
## Example
Carlos, a small restaurant owner in Santiago, has three monthly tax obligations (giros): one due 2 months ago, another 9 months ago, and a third 13 months ago. Under this policy:
- The 2-month-old giro qualifies for 75% interest condonation and 70% penalties.
- The 9-month-old one: 55% interest, 50% penalties.
- The 13-month-old: 30% each.
If Carlos pays all three before any exceed 24 months, and all belong to multiple giros, he may request an **extra discount** via TGR.
## Limitations and Considerations
- Noncompliance beyond 24 months yields no condonation.
- Exclusions for certain infractions or nature of debt.
- Extra benefits need to be requested properly—default route may not cover special cases.
## Broader Context
Chile’s move follows regional trends where tax authorities use condonations or amnesties to boost revenue collection and compliance—seen also in parts of Latin America. Advisory firms like **EY** note these are tactical, temporary reliefs rather than systemic rate cuts. ([sii.cl](https://www.sii.cl/noticias/2026/index.html?utm_source=openai))
## Bottom Line
Chilean taxpayers with outstanding obligations should act promptly—identify, file necessary forms, calculate elapsed time, and settle to benefit from generous condonation rates. Plan now, avoid reaching that 24-month cutoff.