Substitute single tax on accumulated profits is now in force
The 10% IUSIF (Law No. 21,850) has been in effect since October 2026 for accumulated profit balances (FUR, STUT, and excess withdrawals), allowing these to be withdrawn without being subject to the Global Complementary Tax or the Additional Tax.
As of 17 October 2026, the Substitute Single Tax on Final Taxes is in force. It applies to certain accumulated balances of reinvested profits, taxable profits and excess withdrawals. The measure forms part of the transitional provisions of Act No. 21,850 and carries a 10% rate.
What changes. The mechanism permits the advance payment and substitution of final taxation linked to those balances, subject to the conditions established by law and SII operating rules. The authority has already issued the form to declare and pay this tax, making it important to review the composition of corporate tax records carefully before deciding.
What to review. This is not an automatic alternative for every business. The financial impact, the owners’ position, available credits and the regime’s time limits should be modelled. A prior assessment will determine whether the substitute payment offers a real advantage compared with taxation arising on a future distribution.
Source: Original publication https://www.sii.cl/destacados/ley_reconstruccion/
