For purposes of the next income tax return, we suggest taxpayers who file their effective income according to full accounting to pay attention, among other things, to the following matters:

a) Possibility of deducting, totally or partially, as a necessary expense those credits that are overdue and unpaid according to the new N°4 of Article 31 of the Income Tax Law.

b) To analyze the convenience of taking advantage of the transitory instantaneous depreciation regime contained in the Twenty-Second Transitory Article of Law No. 21,210 (Tax Modernization Law) on the acquisition of fixed assets, new or imported, as of June 1, 2020.

c) Examine the alternative of taking advantage of the savings incentive established in letter E) of Article 14 of the Income Tax Law to the extent that the average annual income of its business does not exceed UF 100,000 in the three previous business years.

Should you require additional information on this matter, please contact Rafael Valdivieso, rvaldivieso@jdf.cl y/o Martín Hudson, mhudson@jdf.cl