Restricill No. 17,725
Restrictions on the Presumptive Income Regime
Bill 17725-05 currently under discussion at the National Congress introduces significant modifications to the presumptive income regime, substantially limiting access to this simplified taxation system. These restrictions are part of the bill’s compensatory measures and primarily affect taxpayers in the agricultural, mining, and transportation sectors who currently benefit from this special regime.
The presumptive income regime allows determining the tax base through income presumptions established directly by law, without the need to maintain complete accounting records or demonstrate actual income obtained. Its attractiveness lies both in substantial administrative simplification and, frequently, in a lower tax burden than would result from applying the general effective income regime with complete accounting.
New Income and Effective Capital Limits
Starting January 1, 2028, the presumptive income regime would be limited exclusively to taxpayers who simultaneously meet two cumulative requirements.
First, they cannot exceed 2,400 UF of annual income or sales (approximately USD $100,000 approx.). This limit will apply uniformly across all economic activities eligible for presumptive income, eliminating currently existing sector differences.
Second, the effective capital determined at the start of activities cannot exceed 4,800 UF (approximately USD $201,700). This requirement seeks to exclude taxpayers with significant wealth structures from the simplified regime, regardless of their annual operational income level.
These limits would represent a considerable restriction compared to the currently effective regime, which allows access to presumptive income with substantially higher income thresholds, differentiated by specific economic sector.
Restriction of Eligible Taxpayer Types
The bill establishes that only individuals with domicile or residence in Chile acting as individual entrepreneurs, individual limited liability companies, and communities, cooperatives, partnerships, and stock corporations (as long as they are composed only of individuals with domicile or residence in Chile) can access this regime. This differs from the current rule, which does not distinguish between individuals resident or domiciled in Chile or abroad.
Transitional Implementation Timeline
The bill establishes a gradual transition period between 2026 and 2028, with intermediate limits differentiated by sector:
- 2026 – Restriction by effective capital: maximum 10,000 UF for agricultural activity, 7,000 UF for transportation, or 18,000 UF for mining activity
- 2027 – Restriction by net income: maximum 4,500 UF annually for agriculture, 3,500 UF for transportation, or 9,000 UF for mining
- 2028 onwards – Permanent regime: uniform limits of 2,400 UF annual income and 4,800 UF effective capital for all sectors
Impact on Medium-Sized Companies
The proposed restrictions particularly affect medium-sized companies in sectors traditionally benefited by the presumptive income regime. Agricultural, mining, and transportation entrepreneurs with medium-scale operations who currently pay taxes under presumptive income must evaluate whether they meet the new restrictive requirements or must transition to the effective income regime, which implies not only potentially higher tax burden, but also substantially greater accounting and compliance obligations.
In this context, if the reform is approved, it will be relevant to evaluate the alternatives available in the Pro-SME Regime and identify the costs these modifications would have on operations.
Note: This article is for informational and educational purposes regarding the bill under consideration. It does not constitute specific legal or tax advice. To evaluate the impact on your wealth situation or explore any of these topics in greater depth, contact us.
