Form 22, is a format that exists in Chile, so that its taxpayers, whether natural or legal, present the withholding of their annual earnings.
Form 22: What is it for and how to fill it out?
The so-called Form 22 is an instrument that must be made to fulfill the obligation of the annual income statement. Form 22 is a form that must be processed to meet the requirements of the Income Tax Law, on the gains obtained and, as a result, report what corresponds to the national treasury.
Then you have the so-called Form 22, it is used to empty detailed information of the annual earnings, either by a natural person or a legal entity, it is a duty as a citizen to comply with tax obligations, among which are, Complementary Global Tax o Additional, annual income tax and information boxes.
In any case, the amount to be paid will depend on the difference obtained from the provisional or advanced payments that are made throughout the year, the credits that can be used, determine the amount to be paid for this concept, the taxpayer must inform the national treasury, or failing that, depending on the result, you may have a balance in your favor that will be reimbursed.
We invite you to know another article of interest such as How the single tax is calculated
Who must file the annual income statement and pay taxes?
In Chile, companies and individuals are obliged to declare income tax and pay the corresponding amount as a result of the income obtained from the development of their activities, which originate from two sources: Capital Derived Sources, are those obtained for sales of products and/or services.
The capital income tax is given the name of first category tax. Sources Derived from Work, refer to the monthly salary for the provision of services such as consultancies; This tax is called second category tax.
Who is exempt from filing the Income Tax Return?
With this obligation are exempt dependent workers, pensioners, retirees or pensioners, who are affected by the single second category tax, that is, those people who do not have income other than salary or pension, and who are not obliged to re-settle annually, this tax for simultaneously receiving income from more than one employer.
Then, the following taxpayers can also be concluded as exempt from paying second category taxes: small merchants who carry out activities on the street or public highway, sellers of supplements, and small artisanal miners.
Who should fill out Form 22?
This Form 22 must be filled out by all residents or domiciled in Chile, who have the obligation to prepare the income tax return, such as:
- People who issued bills or invoices for professional fees.
- Those who had more than one employer at the same time, or an employer and a pension, or two pensions.
- The annual income was above 7.609.464 pesos, and that belongs to dividends, company withdrawals, and others.
- The natural or legal persons who wish to opt for a certain benefit that the state considers the reimbursement of taxes.
Procedure to fill out and download Form 22
There are two options to fill out Form 22, it can be done through the use of the Internet, or alternatively, by downloading the form, which is done directly on paper.
In the event that the taxpayer decides to declare Form 22 online, it allows the user to receive their refund in advance, either through a direct bank deposit to their bank account, sight or Rut, or also with the issuance of a check in your favor, which is issued by the General Treasury of the Republic.
In addition, the Internal Revenue Service proposes to taxpayers that their return on Form 22, be prepared with the information provided by the Informant Retention Agents through the respective Sworn Statements.
What is declared in the Income Operation under the second category tax?
There are rents and income that certain people or companies receive for different concepts such as: professional fees, interest, capital gains, property rentals and other extraordinary income. This income must be registered and declared in the rental operation; It is recommended that the tax to be paid will depend on the amount of income received. Rates vary from 0% exempt to 35%.
Online procedure through the Internal Revenue Service website
To prepare Form 22 on the web, you only have to follow the steps that the system itself indicates:
The first thing the user must do is enter the online procedure section. Select declare income; then, you must write the RUT and password, if it were the case that it does not appear registered, you must necessarily create an account in the SII.
The website of the Internal Revenue Service (SII) shows an income declaration proposal, which the vast majority of taxpayers refer to in the information provided by the companies, institutions or withholding agents, and that this information is available at SII databases.
From this proposal, the so-called Form 22 is automatically generated, which contains a summary of the income declared for the previous year. But, in certain cases, the SII only delivers a partial proposal, for this reason the taxpayer is obliged to register the missing data.
Immediately select the tax year to declare, click on accept. In the event that the taxpayer's information is correct, but there are no previous corrections to be made, you must press the continue button.
Once you enter, you must verify the information that appears on the screen and begin to complete the information requested on Form 22; It is recommended that the user carefully check the registered data, then press the submit button. The form must be printed and a copy must be kept as a backup.
Once all these steps have been completed, the process is complete, and the income statement is completed.
In this part, we will show the simple steps that need to be done to get the Form 22 proposal.
You must enter the corresponding site, click on the "My Sii" option.
Enter your RUT and password that allows you to give access to your account.
In the "My returns" section, you must select the "Annual F22" option.
Select the corresponding year, and if it is the case to register declarations, click on "see more details in Consult Income Declaration Status".
Select the corresponding year and click on the "Consult" button.
Select the “see compact Form 22” button.
Immediately, the system will display a form that can be filed on your computer, by selecting "view compact PDF".
Face-to-face procedure at SII offices
The first thing a person should do is gather all the documents that contain the background.
Go to a SII office that is closer to your home.
Explain carefully to an official the reason for your visit, allowing them to assist you and prepare the proper income tax return.
So that you can carry out the corresponding procedure and comply with the annual income statement.
If for any reason, the taxpayer verifies that there is some information that does not have the correct data regarding their personal situation, it is their duty to modify the proposal.
It is recommended if possible, if it were the case, you should contact your withholding agent or corresponding informant, so that they modify the information indicated in the Sworn Income Statements.
When is the tax refund received as a taxpayer?
In this case, everything will depend especially on the difference between the provisions canceled throughout the year, and the total amount resulting from paying monthly income taxes at the end of the year.
So we have, if a natural person, who paid the second category tax for the income he earned during a year, and if his net annual income exceeds 7.609.464 pesos, the person is responsible for paying the tax, and does not receive any return. Rates range from a minimum 4% rate to a maximum of 35%.
Those who receive tax refunds are taxpayers whose annual income is above the limit of 7.609.464 pesos. The person prepares the annual income statement to receive the tax refund, which corresponds to 10% of the annual total previously withheld from all the monthly income that is accumulated.
It is important to point out that for the first time, in relation to Operation Income 2020, the Financial Newspaper published information, that those who make their declaration will receive emails containing details of how the State spent the canceled taxes, either on education, housing or others.
News of Form 22
It is important to highlight as relevant information to all income taxpayers, through form 22, the state on December 20, 2018, decided to make certain changes that would apply from the year 2019.
Among the main novelties, the introduction of new boxes that taxpayers must consider stands out, emphasizing the box for reporting tax losses from previous years, which for some reason had been eliminated in 2018.
The boxes that were added to form 22 are the following:
Line 43: Credit to the IGC or IUSC for First Category Tax, with the right to a refund for IGC re-settlement, for term of business according to line 25.
Line 49: First Category Tax for companies covered by the Attributed Income Regime, according to letter a) of art. 14 and of entities with owners subject to IGC or IA.
Line 50: First Category Tax for companies covered by the Semi-integrated Regime, according to letter b) of art. 14.
Line 893: Effective capital increases made in the year.
Line 894: effective decreases in capital made in the year.
Line 1123: credit for direct traceability disbursements.
Line 1114: income received in the year for disposals made in the previous year.
Line 1118: Negative taxable net income for the year.
Line 1119: Updated tax loss from prior years.
Line 1120: Expenses for donations according to art. 37 DL No. 1.939.
Line 1121: Expenses rejected from donations according to art. 37 DL No. 1.939.
Line 1122: Expenses for donations according to Law No. 21.015.
Line 1124: Expenses rejected from donations according to Law No. 21.015.
These are the changes that were introduced in 2018:
Line 5: on this line you must declare the attributed income from companies covered by the attributed income regime and its credit.
Line 24: this line must be recorded when the affected taxpayer.
Line 27: will be used when the restitution of 35% of the IDPC credit from withdrawals, remittances must be made.
Line 30: must be used by natural persons who declare IGC for the highest value obtained in the alienation of agricultural or non-agricultural real estate acquired by succession due to death.
Line 49: must be used by companies and partnerships that declare the effective income determined through incomplete accounting.
Line 66: must be used by all taxpayers.
Box No. 2: Box No. 2, first category tax base, is eliminated.
Box Nº3, accounting data, is reduced.
Box No. 6, from FUT, is removed.