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Termination of business with the SII: the two month filing, the closing tax on undistributed profits, review periods and deemed closures

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Last verified: 2026-10-26 · Status: Changing

A company that stops its business must file a termination notice with the SII in its electronic tax folder, attach a final balance sheet and pay the closing taxes within two months. Profits not yet taxed at owner level are treated as distributed and bear 35 percent with credit for corporate tax already paid, and the SII then has six months, extendable by three, to review. If a company simply goes dormant, the SII can declare the termination itself and assess the taxes, with an extra year of statute of limitations.

USD figures use the Central Bank exchange rate of CLP 986.58 per US dollar published in the Diario Oficial for 23 October 2026 (CNCI Chapter I, Title VII). UF and UTA values are the SII figures for October 2026 (UF 41,221.08 on 26 October; UTA CLP 865,812). Conversions are for orientation only.

Key facts

Deadline to file termination and pay the closing tax	2 monthsCódigo Tributario, art. 69, as of 2026-10-26 · in force
SII review period after the termination filing (extendable by 3 months)	6 monthsCódigo Tributario, art. 69, as of 2026-10-26 · in force
Days to supply missing documents after SII notice	5 daysCódigo Tributario, art. 69, as of 2026-10-26 · in force
Days for the SII to notify final closure after acceptance	15 daysCódigo Tributario, art. 69, as of 2026-10-26 · in force
Tax on undistributed profits deemed withdrawn at termination	35 %DL Nº 824, art. 38 bis Nº 1, as of 2026-10-26 · in force
Periods without operations after which termination is presumed	36 monthly periodsCódigo Tributario, art. 69, as of 2026-10-26 · in force

The rule

1. Any taxpayer that stops being subject to tax because it ends its business or activities must notify the SII through its electronic tax folder, on the form included there, attaching its termination balance sheet and the information to determine the taxes due, and must pay the tax determined at the date of the final balance within the two months following the termination date. This single filing covers all its obligations and the SII updates all registers.
Cost to do it: No filing fee; the closing tax plus accountant time for the final balance.Decreto Ley Nº 830, Código Tributario, as amended by Ley Nº 21.713, Art. 69, first paragraph, 2024-10-24 official text · verified 2026-10-26

2. Once the notice is filed, the SII has six months to review and directly assess any tax difference; the period is extended by three months if new information appears, the taxpayer files additional documents, or a reasoned resolution finds the returns maliciously false. If documents are missing, the SII notifies the taxpayer, who has five days to supply them; the review period then runs from full delivery, and if they are not supplied the request is set aside. When the review ends, or if the SII does not act within the periods, the filing is deemed accepted, the SII may not audit further, must notify final closure within 15 days, and certifies the termination once the tax is paid.
Cost to do it: No fee; time cost of answering SII requests within five days.Decreto Ley Nº 830, Código Tributario, as amended by Ley Nº 21.713, Art. 69, first to fourth and sixth paragraphs, 2024-10-24 official text · verified 2026-10-26 · changed: Ley Nº 21.713 (Diario Oficial 24 October 2024) set the six month review, the three month extension, the five day deadline for missing documents and the 15 day closure notice.

3. Companies in the Pro Pyme regime of art. 14 letter D) may request a simplified termination if, besides the filing, the owners, partners or shareholders declare in a public deed that they are jointly liable for all taxes the company owes. The SII then assesses the taxes on the taxpayer's own figures within one month and certifies the termination after payment, but may still assess differences or open an audit within six months, extendable by three, notifying the owners.
Cost to do it: Notary cost of the joint liability deed.Decreto Ley Nº 830, Código Tributario, Art. 69, eighth paragraph, 2024-10-24 official text · verified 2026-10-26

4. If the SII has information that a person or entity has ended its business without notice, it may, after a summons, assess and collect the taxes as if a termination had been filed, and the statute of limitations is extended by one year from the summons for the company and its owners. This applies especially when a taxpayer obliged to file monthly or annual returns has not filed, or has declared no income or operations, for 18 consecutive months or two consecutive tax years. After six or more consecutive monthly periods without returns, the SII may take steps to establish whether activity has ceased; six months later, if the taxpayer has not resumed, has no profits or assets pending tax, no net tax differences and no tax debts, termination is legally presumed and declared by resolution. The same presumption applies after 36 or more periods without operations.
Cost to do it: Taxes assessed by the SII plus interest and penalties; longer exposure for owners.Decreto Ley Nº 830, Código Tributario, Art. 69, ninth to final paragraphs, 2024-10-24 official text · verified 2026-10-26

5. At termination, a company under the general regime of art. 14 letter A) must treat as withdrawn, distributed or remitted to its owners the positive difference between its tax equity, increased by any negative REX balance, and the sum of its positive REX balance and its contributed capital adjusted by CPI, grossed up by the corporate tax and foreign tax credits in the SAC register. The part attributable to owners who are final taxpayers, which includes non residents, bears a 35 percent tax, against which the proportional SAC credit may be deducted. Excess credits are lost and cannot be refunded. For owners that are companies under art. 14 letters A) or D) Nº 3, the amount is treated as distributed to them with the corresponding credit.
Cost to do it: 35 percent on the deemed distribution, less SAC credit.
Example: Tax equity CLP 2,959,740,000, REX CLP 197,316,000, capital CLP 1,973,160,000 and SAC credit CLP 295,974,000: base CLP 1,085,238,000, tax at 35 percent CLP 379,833,300, less credit, due CLP 83,859,300. / Equity US$3,000,000, REX US$200,000, capital US$2,000,000, SAC US$300,000: tax US$85,000 after credit, or US$190,000 if 35 percent of the credit must be restituted.Decreto Ley Nº 824, Ley sobre Impuesto a la Renta, Art. 38 bis Nº 1, 1974-12-31 official text · verified 2026-10-26

6. Until 31 December 2026, the SAC credit deducted from the termination tax is subject to restitution where arts. 56 Nº 3 and 63 require it; art. 63 requires owners to restitute 35 percent of credits subject to restitution, except additional tax payers resident in a treaty country whose treaty makes the corporate tax deductible from the additional tax or has an equivalent clause. From 1 January 2027 the reference to restitution is removed from art. 38 bis, while credits generated in commercial years 2027 and 2028 still carry a reduced restitution of 30 and 20 percent under the transitory rules.
Cost to do it: Restitution of 35 percent of the credit for non treaty owners on credits accumulated to 2026.
Example: On a SAC credit of CLP 295,974,000, restitution at 35 percent is CLP 103,590,900. / On US$300,000 of credit, restitution is US$105,000.Ley Nº 21.850, for national reconstruction and economic and social development, Art. 9 Nº 2 and Nº 4; fifth transitory article, 2026-10-17 official text · verified 2026-10-26 · changed: Ley Nº 21.850 (Diario Oficial 17 October 2026) removes the restitution reference in art. 38 bis from 1 January 2027 and phases restitution down to 30 and 20 percent for credits generated in 2027 and 2028.

7. On termination, any VAT credit balance can be used against the VAT on the sale or liquidation of the business or its assets, and any remainder only against the first category tax owed for the last year.
Cost to do it: No fee; unused VAT credit is lost.
Example: A VAT credit balance of CLP 9,865,800 offsets VAT on the sale of the last assets. / US$10,000 of VAT credit can be used on the final asset sales or the last corporate tax return.Decreto Ley Nº 825, Ley sobre Impuesto a las Ventas y Servicios, Art. 28, 1974-12-31 official text · verified 2026-10-26

Item	US$	CLP
Tax equity at termination	3,000,000	2,959,740,000
Less positive REX balance	200,000	197,316,000
Less contributed capital, CPI adjusted	2,000,000	1,973,160,000
Deemed distribution	800,000	789,264,000
Plus SAC credits (gross up)	300,000	295,974,000
Tax base	1,100,000	1,085,238,000
Tax at 35 percent	385,000	379,833,300
Less SAC credit	300,000	295,974,000
Tax due, treaty owner without restitution	85,000	83,859,300
Restitution 35 percent of credit, non treaty owner (credits to 2026)	105,000	103,590,900
Tax due, non treaty owner	190,000	187,450,200

Termination tax worked example for a general regime company with a foreign owner (DL Nº 824 art. 38 bis Nº 1). CLP at 986.58.

Step	Deadline
File notice, final balance and pay tax	Within 2 months of ending activities
Supply missing documents after SII notice	5 days
SII review	6 months, plus 3 if new information
SII notice of final closure after acceptance	15 days
Pro Pyme simplified termination: SII assessment	1 month, audit window 6 months

SII termination timeline (Código Tributario art. 69).

Worked example

A foreign owned SpA under the general regime stops operating on 31 March 2027 and must file and pay by 31 May 2027 (Código Tributario art. 69). Its tax equity is US$3,000,000 (CLP 2,959,740,000), its REX balance US$200,000 (CLP 197,316,000) and its CPI adjusted capital US$2,000,000 (CLP 1,973,160,000).
The deemed distribution is US$800,000 (CLP 789,264,000). Grossed up by US$300,000 of SAC credit the base is US$1,100,000, tax at 35 percent is US$385,000, and after the credit US$85,000 (CLP 83,859,300) is due if no restitution applies (DL Nº 824 art. 38 bis Nº 1).
If the owner is resident in a country without a qualifying treaty and the credits were accumulated up to 2026, restitution adds US$105,000, for US$190,000 (CLP 187,450,200) in total. For an Argentine owner, whether the Chile Argentina treaty listed by the SII has a qualifying clause decides this point; the Argentine side is in the Argentine guide.
The SII then has six months to review; once the filing is accepted it cannot audit further and certifies the termination after payment.

Step by step

1. Fix the date on which activities end and prepare the final termination balance at that date.
2. Compute the art. 38 bis deemed distribution from tax equity, REX and contributed capital, and the SAC credit available.
3. Use any VAT credit balance against VAT on the final asset sales, then against the last corporate tax (DL Nº 825 art. 28).
4. File the termination in the electronic tax folder with the balance and support and pay within two months (Código Tributario art. 69).
5. Answer any SII request for missing documents within five days.
6. Keep records and the company's representative available until the review closes and the termination is certified.

Common traps

Leaving a company dormant does not stop exposure: the SII can declare the termination, assess the taxes and gets an extra year of limitations against the company and its owners (Código Tributario art. 69).
Excess SAC credits after the termination tax are lost and are not refunded (DL Nº 824 art. 38 bis Nº 1).
Missing documents not supplied within five days lead the SII to set aside the termination request (Código Tributario art. 69).
The Pro Pyme simplified route makes the owners jointly liable for all the company's taxes (art. 69).
Capital not properly documented as contributed is not deducted in the art. 38 bis computation, so it is taxed as if it were profit.

Sources

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