Of the total Inheritance Tax levied, 75% is associated with taxpayers classified as High Net Worth Individuals. Additionally, thanks to control and auditing actions, discrepancies in taxes of over $21 billion pesos were detected.
The Internal Revenue Service (SII) reported that in 2023, a collection of $182,683,277,503 million pesos was recorded in Inheritance, Allocations, and Donations Tax, associated with 25,332 issued disbursements. Of the total Inheritance Tax collected, 75% is related to taxpayers classified as High Net Worth Individuals. Their heirs paid an approximate amount of over $137 billion pesos.
In 2021, the SII modified the declaration and auditing model for Inheritance, Allocations, and Donations Tax, enabling electronic form 4412, which simplified and facilitated this process for taxpayers, reducing processing times, which has had a growing effect on declarations submitted for this tax, as well as the amounts paid.
Thus, the current electronic form allows for the complete online submission of the declaration, without requiring documentation at the time of declaration, but only to be submitted in case of auditing or other SII requirements.
With this change, the declaration is facilitated not only by providing a digital form for inheritances and donations but also by automatically performing calculations for taxpayers, according to the law, avoiding formal errors in submission.
The SII’s Audit Deputy Director, Carolina Saravia, stated that based on the results obtained, “we can better appreciate the impact of the change in the declaration and auditing model for this tax, going from $73.730 billion pesos corresponding to the amount paid for inheritance tax in 2020 (prior to its implementation), to $182.683 billion pesos paid for Inheritance Tax in 2023, where we are already observing a stabilization of the amounts paid through this new system.”
Carolina Saravia explained that “the declaration and payment of this tax have been reinforced through actions by the Service itself, which include sending emails to determined heir taxpayers according to the risk model, reminding them of the deadline for their declaration obligation, to the publication on sii.cl of detailed information about Inheritance Tax and Donation Tax. In corrective matters, audits have been applied to those taxpayers who present higher compliance risks.”
In terms of auditing, the changes made have allowed the analyses to be considered within the SII’s tax risk matrix, making it possible to proportionally prioritize auditing actions to the taxpayer’s risk, which also streamlines the complete declaration and auditing process compared to the old declaration and review model. In this regard, and thanks to control and auditing actions, discrepancies in taxes of over $21 billion pesos were detected.
Donation Tax
In the case of donations – the transfer of property made between living individuals free of charge – a similar evolution is observed, marking a peak in amounts paid in 2022, the first year of operation under the new system. The sustained increase in declaration and payment of this tax suggests that the strategy has been showing positive results both in preventive terms, with various information actions, and also through auditing actions carried out by the SII, on issues such as intergenerational transfer of wealth, especially in relation to High Net Worth Individuals.
Of the total donations in 2023, nearly 98% correspond to High Net Worth Individuals. Those who received the donation have paid approximately $46.391 billion pesos for this tax.