If your monthly taxable remuneration is equal to or greater than $ 1,500,000, you will have to incorporate the second 10% withdrawal in your Annual Income Statement. Find out here the tributary edges of this project that has already been enacted into law.
After being approved in both houses of Congress, on December 10, Law 21,295 was enacted, authorizing Chileans to make the second withdrawal of 10% of the funds they have in their AFPs. The main difference with the first project is that this time those who have monthly income over 1.5 million (18 million per year) will have to pay tax for the withdrawal of their pension funds. The Internal Revenue Service has already consulted a draft Circular on the matter.
According to Decree Law 3,500 of 1980, the pensions granted in accordance with said legal body are subject to the income tax levied on pensions, wages and salaries. In this way, both the capital contributed by the contributor and the profitability of their funds are taxed at the time of payment of the pension with the Single Second Category Tax.
In the present case, the funds earmarked for old-age pensions that are withdrawn early and voluntarily in accordance with this law, will be subject to said tax.
To the extent that the member’s annual income does not exceed 30 UTA ($ 18,370,440), the entire withdrawal will be considered non-income income. Otherwise, if the annual income exceeds 30 UTA, the entire withdrawal will be subject to taxes.
The AFPs will have the obligation to inform the Internal Revenue Service of the withdrawals made by their affiliates, informing the date and amount of payment.
The foregoing is of the utmost importance, since, as it is a payment in two installments, they may be affected in different tax years. That is, if the first payment is made within 2020 and the second during 2021, the first will be incorporated into the 2021 Annual Income Statement and the last one in the 2022 Annual Income Statement.
In this way, a person who earns 1.5 million per month and withdraws his 10%, must incorporate the amount of his withdrawal in his Annual Declaration and pay the tax corresponding to his tranche. “Taxpayers who have income subject to Complementary Global, are recommended to request the withdrawal 10-12 business days before the end of the year, in order that they only incorporate 50% of the withdrawal in the return of April 2021, and the other 50% in April 2022 “, said Gabriel Abarzúa, Senior Tax Officer at Jullian Consultores.
It should be remembered that the minimum amount that people can withdraw will be 35 UF ($ 1,018,115 as of today), while the maximum amount will be 150 UF ($ 4,363,350). Those who have a total pension savings of less than 35 UF will be able to withdraw all their funds.