Compliance
Leveraging Chile’s New Condonation Policy: How to Reduce Interest & Penalties Effectively
Chile’s SII and TGR have launched a new policy (effective June 18, 2026) to condone portions of interest and penalties for delinquent tax debts—understand how to qualify and optimize relief.
By NomadicTax Research Team • 5-6 min read • August 14, 2026
## What is Chile’s new condonation policy?
Starting **June 18, 2026**, the Servicio de Impuestos Internos (SII) together with the Tesorería General de la República (TGR) implemented a **new policy** under Article 207 of the Chilean Tax Code. The policy provides more **flexible rates of forgiveness** for interest and fines associated with outstanding tax debts, based on how long those debts have been pending. ([sii.cl](https://www.sii.cl/noticias/2026/220626noti01smn.htm?utm_source=openai))
## How the forgiveness breaks down by debt age
| Debt Age | Forgiveness of Interest (above legal 3.5%) | Forgiveness of Fines/Multas |
|---|---|---|
| 1–3 months | 75% | 70% |
| 4–12 months | 55% | 50% |
| 13–18 months | 30% | 30% |
| 19–24 months | 15% | 20% |
| Over 24 months | 0% | 0% |
Extra bonus: paying the **total debt**, when the debtor has more than one “giro” and debts are **not older than 24 months**, grants an additional **5% interest forgiveness**. ([sii.cl](https://www.sii.cl/noticias/2026/220626noti01smn.htm?utm_source=openai))
## Who qualifies—and who doesn’t
- Applies to individuals and legal entities with overdue tax obligations those include unpaid **interest and/or penalties**. ([sii.cl](https://www.sii.cl/noticias/2026/220626noti01smn.htm?utm_source=openai))
- **Excluded**: debts for infractions without a base tax, or penalties caused by things beyond the taxpayer’s responsibility. These cases require a **presential application** (via Form 2667 or similar) at SII or TGR. ([sii.cl](https://www.sii.cl/noticias/2026/220626noti01smn.htm?utm_source=openai))
## Actionable steps to benefit
1. **Check your debt age** — calculate how many months the debt has been overdue. If within 1–24 months, you may qualify for considerable condonation.
2. **Decide payment method** — paying the full amount speeds access to forgiveness. Partial payments usually don’t reach the highest benefit tiers.
3. **File correctly**:
- Normal debts: Online through sii.cl or tgr.cl.
- Excluded or special cases: Present documentation in person using Form 2667. ([sii.cl](https://www.sii.cl/noticias/2026/220626noti01smn.htm?utm_source=openai))
4. **Document thoroughly** if requesting higher forgiveness under special conditions.
5. **Monitor deadlines** — although the policy is effective now, no blanket expiration yet. But eligibility and procedures may evolve. Staying current is essential.
## Real-world example
> María owed taxes and penalties totaling ~$US 10,000. The debt has been overdue for 5 months. Under the new policy, she may receive 55% forgiveness on interest and 50% on fines. If she pays the full amount within policy terms, she gets an extra 5% interest forgiveness.
## Key takeaways
- The policy is a powerful **Compliance tool** to reduce past liabilities.
- Acting promptly matters—being within certain age brackets secures higher forgiveness.
- Excluded categories need special application and may be more work.
- Stay updated—this policy may be adjusted later in 2026.
**Bottom line**: If you’re overdue on Chilean tax debts from the last two years, this policy could save you thousands. Assess, apply, and clear your debts with maximum relief.