The impact of the tax reform in agriculture

From the tax point of view, with the 20.899 Law, the rules changed and the actors of the agricultural sector know it better than anyone, since a series of changes are coming to them.

Thus, for example, all those who paid tax on presumed income; that is, by the 10% of the tax appraisal of the property they exploited and where the limit was that the sales could not exceed 8 thousand UTM (equivalent to just over $ 369 million to the value of the UTM in December). From now on, the limit of annual net income will be 9 thousand UF (equivalent to about $ 236 million, to the value of the UF of the 9 in December) and, in addition, the type of entrepreneur who can benefit from this regime is defined , leaving out all types of legal entities.

Likewise, the new law establishes that if a natural person is part of more than one company, it adds up its profits and that amount must not exceed 9 thousand UF.

The lawyer and tax advisor of Asoex, Franco Brzovic, warns that these changes respond to the presumed income points only to small agricultural entrepreneurs who need simpler conditions to realize their business.

Those who do not comply with the presumed income requirements must pay actual income, which offers three different regimes: simplified or 14 Ter, attributed income and semi-graduate system.

The simplified tax regime of Article 14 Ter is aimed at micro, small and medium enterprises. Given its nature, it offers a series of benefits and facilities for SMEs.

One of them is that, unlike the companies that pay with full accounting, those assigned to the 14 Ter only do so because of their cash flow; that is, for the earnings actually received (only invoices paid) and not for the payments that have not yet been finalized.

"Those who take advantage of this simplified accounting will pay a lower tax, since they will declare income by flow. Although they can reduce the tax base for the benefits of the 14 Ter regime, they must also comply with the sales limit of 50.000 UF“, says Brzovic.

The biggest difference between the systems of attributed and semi-graduate income lies in the tax burden and the percentage of credit that will be returned to taxpayers. In the first, as in the 14 Ter, all profits are presumed withdrawn, so that the partners must declare in their Complementary Global Tax all the profits received during the tax year of that year. However, in this system they can make use of the total credit of the amount paid by the company, 25% in 2017, which is subtracted from their personal tax burden.

"Thus, if these attributed profits are adjusted to the amounts that will be withdrawn from the company and the overall tax rate is less than 25%, the taxpayer may even receive a refund“, complements Mauricio Calvo, lawyer for Araya y Cía.

In the semi-graduate regime, the owners or shareholders of the companies must pay taxes on the basis of effective withdrawals of profits. Meanwhile, the company will pay 25,5% in 2017, reaching 27% in 2018. Here, the partners can only credit 65% of the amount paid by the company. In addition, the law requires the return of the 9% of the amount paid, a percentage that the members will also pay, raising the personal rates of the Global Complementary Tax.

"This system is suitable for entrepreneurs with capital in several businesses and who do not think to withdraw all the profits obtained by the companies. One has to analyze how much liquid income reaches a person. If the average personal tax is less than 25%, I will be entitled to attributed income, but if it exceeds the 27% the semi-graduate can be the best optionCalvo explains.

FUT and operations abroad

Regarding the utilities that to date have not been withdrawn and the alternatives to face that situation, the Treasury allows to pay the substitute tax, which in other words is to pay the tax that corresponds to the historical FUT of each partner. In addition, funds are not allowed to be withdrawn from the company until the taxpayer wants, without limits for more recent capital accumulations. The issue here is that you have to do it before the end of the year.

Regarding transactions with foreign parties, one of the issues is the transfer price, since the amounts to be paid for this concept can reach 45% of the amount charged by the SII. For experts, avoiding associated taxes and fines requires compliance with the rules and deadlines stipulated by the authority. The SII requires an affidavit that specifies the services acquired or borrowed abroad, and then collates them using a predefined method that determines a fair price range for that service or operation.

Source: Field Magazine

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