The article 17, No 7 of the Income Tax Law enacts that capital reimbursement does not constitute income, considering as such, only that part that is imputed to the readjusted social capital, stipulates that if capital reimbursement is imputed to profits pending of taxation, the corresponding taxes shall be paid.
Likewise, this regulation establishes the crediting order that capital reimbursements must comply, firstly setting that those profits pending of taxation will be imputed and afterwards the readjusted social capital. Hence, the present article aims to specify what is the imputation order for capital reimbursement and the taxation treatment for each of these imputations.
Keywords:
capital reimbursement, imputation order, non-taxable income, article 17 No 7
Oviedo Duarte, M. E. (2016). Capital Reimbursement. Revista De Estudios Tributarios, (15), pág. 13–39. Retrieved from https://revistaurbanismo.uchile.cl/index.php/RET/article/view/43210
