How and when to pay the 2021 State Solidarity Loan in Chile

The Covid-19 pandemic affects us all. In the most critical moments of the health emergency, many people and households watched helplessly as their domestic economies collapsed or entered into crisis. To respond to this, many governments granted subsidies to the population and some, as in the case of Chile, implemented financial support measures based on credits . That is what the State Solidarity Loan 2021 was about, which was disbursed on a monthly basis upon request to natural persons and individual entrepreneurs who met certain requirements.

Now, we have already crossed the middle of the year 2022 and since September there has been a lot of talk about this topic and the possibility of starting to pay. Here is more information about it:

Who do I pay the refund to?

The 2021 State Solidarity Loan must be paid to the Internal Revenue Service (SII) , the entity responsible for this type of tax process.

How much should I pay?

The amount to be paid is based on the amount of the loan received and the interest rate applied is 0% . The standard payment process consists of four installments whose value will be readjusted according to the Consumer Price Index (CPI) , being as follows:

First installment: in 2023, 10% of the requested amount.

Second installment: in 2024, 30% of the requested amount.

Third installment: in 2025, 30% of the requested amount.

Fourth installment: in 2026, 30% of the requested amount.

The fee corresponding to each year is paid during the month of April in the Income Operation and none may exceed 5% of the annual income tax return. For this reason, if after the fourth installment there is still an outstanding amount, it will be forgiven .

other mechanism

In order to alleviate the financial impact generated by the repayment of the loan, as of September 2022, the 3% withholding mechanism has been established on monthly income, as follows:

For dependent workers , employers will apply the withholding directly to their income.

Independent workers must make a Monthly Provisional Payment (PPM) with the additional 3% or those who receive their services may make the withholding.

In the case of individual entrepreneurs, the increase will apply to the rate of Monthly Provisional Payments of the corresponding First Category Tax .

If you wish to pay the entire loan in advance (it is not possible to make partial payments other than those already mentioned), the SII has enabled this possibility through its website, Online Services tab, Monthly Taxes option, Monthly Declaration (F50) , checkbox code 831 (Advance Payment of the Loan Rate 0%, according to Law 21,323) .