On 13 August 2026, the Chilean Internal Revenue Service (SII) issued formal notification to taxpayers who hold outstanding installment balances from the Solidary Loan program, a financial assistance initiative established under Supreme Decree No. 123 of 2020 in response to the economic downturn caused by the global COVID-19 pandemic. The Solidary Loan program provided eligible individuals with interest-free financing up to a maximum cap, structured as a deferred tax liability repayable over a ten-year horizon commencing in the 2023 fiscal year, with repayment schedules calibrated to the recipient’s declared income and family circumstances. Recent regulatory amendments, codified in Supreme Decree No. 456 of 2025, have revised the repayment timetable and introduced mandatory compliance deadlines for taxpayers who have fallen behind on their scheduled installment payments, aiming to ensure the program’s fiscal sustainability and equitable distribution of benefits. The SII’s notice specifies that affected taxpayers must regularize their status by 30 September 2026; failure to do so will result in the outstanding balances being reclassified as delinquent debt, subject to the accrual of interest penalties at the legal rate and potential enforcement actions, including the initiation of administrative proceedings for asset seizure and inclusion in the national credit risk database. Furthermore, the amendment clarifies that the repayment obligation applies regardless of whether the original loan was fully utilized or partially disbursed, and that taxpayers may submit a request for a one-time repayment plan adjustment based on demonstrated financial hardship, subject to review and approval by the SII’s dedicated hardship unit. The notice also outlines the tax consequences of loan forgiveness or restructuring, stipulating that any waived or canceled installment amount will be treated as taxable income in the fiscal year of forgiveness, thereby triggering a mandatory reassessment of the taxpayer’s annual income tax return and potentially generating additional tax liabilities, interest, and penalties. To assist beneficiaries in navigating these requirements, the SII has activated a specialized online portal and a toll-free helpline, enabling taxpayers to calculate exact arrears, submit regularization payments, and request plan modifications with the guidance of qualified tax advisors, all aimed at reducing the administrative burden while maintaining strict compliance with the amended regulatory framework.
Key Takeaways
- Taxpayers with unpaid installments from the Solidary Loan program disbursed in 2020 and 2021 are required to regularize their status by 30 September 2026; failure to comply will result in the reclassification of outstanding balances as delinquent debt, accrual of interest penalties, and potential enforcement actions such as asset seizure and inclusion in the national credit risk database.
- The repayment obligation applies to both fully and partially disbursed loans, and taxpayers may petition for a one-time repayment plan adjustment based on documented financial hardship, subject to review and approval by the Chilean Internal Revenue Service, which may grant modified terms or temporary deferrals.
- Any waived or forgiven installment amounts will be treated as taxable income in the year of forgiveness, triggering a mandatory reassessment of the taxpayer’s annual income tax return and potentially resulting in additional tax liabilities, interest charges, and penalties.
Disclaimer:This article is compiled and summarized based on publicly available information and is for general information and academic exchange purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. For tax planning, please consult a qualified professional tax advisor or legal counsel.
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