The enactment of the Tax Compliance Law (Law 21,713) has introduced numerous changes directly impacting tax and auditing processes. This reform primarily affects tax sanctions in Chile, which are categorized into tax infractions and tax crimes. 

Development of the law 

Among the various matters covered by this Law, the modifications to sanctions are particularly noteworthy on this occasion. These changes specifically impact those described in Article 97 of the Tax Code, mainly affecting penalties associated with serious offenses and creating new criminal typifications. 

The tax authority (SII) has published Circular No. 33/2025, which clarifies the concepts of tax infraction (lesser severity) and tax crime (greater severity). Regarding infractions, changes have been introduced primarily related to the keeping of accounting books and the issuance of tax documents. On the other hand, a tax crime is defined as “conduct corresponding to the authorization of folios for electronic tax documents, by digital means and with the knowledge that they will be used to defraud the Treasury”, according to the circular statement. 

Reform in considerations

To understand the changes made to the classifications of tax infractions and crimes in depth, the following are the most relevant for legal entities with a presence in Chile: 

 *1 Do not provide or provide the tax documents without the minimum requirements of invoices, receipts, credit or debit notes, or dispatch notes. Subdivision of the sales amount to avoid the issuance of receipts

*2 Executing acts or contracts to reduce assets or increase liabilities, when it has become knowledgeable of the start of an administrative or judicial proceeding, without economic or legal justification, other than harming the administration or frustrating the fulfillment of tax obligations

Conclusions 

Latin American states are increasingly scrutinizing companies, aiming to boost state revenue, enhance entity transparency, and ensure regulatory compliance. Therefore, Chile is joining this trend with increased sanction levels for non-compliant taxpayers. 

Managing legal and tax obligations can be challenging when you handle assets across different jurisdictions. Do not hesitate to contact us for our tax services in Chile or in the over 50 countries where we operate. 

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At Auxadi, we offer comprehensive services in accounting, tax, payroll, and corporate legal services to multinationals and funds. With experience since 1979 and a presence in over 50 countries, including 22 proprietary subsidiaries, our advanced technological platform and proven methodology enable us to guarantee efficient management in compliance with local regulations.