For declarations of net taxable income, income to be attributed and income attributed to legal persons, the Internal Revenue Service has created the form 1923.
With this easy-to-use and long-to-complete tool, you can keep track of costs, expenses, and adjustments that affect the Income Tax Law in most of its length.
Here is a simple and clear guide on how to fill out and submit the form 1923.
What is Form 1923?
The form 1923 It is a specific sworn statement of the terms in the determination of the net taxable income, income to be attributed and income attributed to partners, owners, owners, shareholders for taxpayers included in the Article No. 14 of the Income Tax Law.
This affidavit is divided into 4 partscategorized with the letters A, B, C and D.
- The Section A collects the identification data of the taxpayer making the declaration.
- The Section b compiles the information of items and concepts referring to the net taxable income and the income to be attributed, together with the amounts of said concepts.
- The section C It includes the data referring to the income attributed to the owners, community members, partners and shareholders and the credits in relation to this.
- The section D It works as a summary table of the penultimate part of the process.
What is it and what is it for?
The form 1923 It is a document that must be presented by the taxpayers that covers the Income Tax Lawwith all the information on first category taxable liquid income, such as income, expenses and adjustments that are related to the base of these taxes.
Overall: the form 1923 It is a statement that allows collecting in an orderly and specific way the amounts and data of the different income of the partners, community members, owners and shareholders of Chili.
Instructions for the Preparation of the Affidavit 1923
For the correct use of form 1923 We recommend following the instructions below:
- go to the section A: “Identification of the declarant”. There you must indicate the RUT, company name, address (community), email, fax and telephone number.
- Go fill in the section B, «Detail of concepts and/or items of the Net Taxable Income and the Income to be Attributed». In this part you must write down the amounts of said concepts. In the column of numbers you must write the correlative of the concept or item that you are going to declare, while in the column of concept or item you must add the numbers assigned to each item according to the list that we will leave at the end of this guide.
- Below is the summary table of the Section bwhere you must record the result of the sum that determines the liquid income tax.
- In the same way, in the column of the income to be attributed you must include the total corresponding to this income. Natural persons (see individual entrepreneurs) must refrain from filling in this section.
- For the column of the amount of attributed income, you must write the amount of income that is related to the partner, community member, shareholder or owner, regardless of whether they have credit or not.
- In the credit for first category tax with the right to refund, you write the total amount of the credit and the final taxes that the taxpayer to whom the income is referred to can access.
- Likewise when you get to the non-refundable first category tax credit column.
- To finish with this part, for the column of credit for taxes paid abroad, you must have the total amounts of this credit in addition to the final taxes. If this were a foreign credit delivered as a draft, it must be registered in the base of the Complementary Global Tax.
- Finishing with this guide in the summary table of section Cwhich has been determined as the section Dthe total number of reported cases must be recorded, together with the results of attributed income and credits for first category taxes and those paid abroad, knowing the information given in the previous section.
- Finished! you have completed your form 1923 for the declaration of all income and established.
The concepts or items and the numbers corresponding to each of the cases indicated in the Section b can be determined as the following when you complete your form 1923:
- Business income received or accrued.
- Foreign source income.
- Interest received or accrued.
- Other income received or accrued (all of the above concepts are considered gross income and represent a sum for the result according to the Article No. 29).
- Direct cost of goods and services (this concept is considered as a Direct costwhich is subtracted from the total as designated in Article Not. 30).
- Financial depreciation of the year.
- Interest paid or owed.
- Expenses for donations.
- Other financial expenses.
- Expenses for investment in research and development certified by Corfo.
- Costs and expenses for inventions in research and development not certified by Corfo.
- Costs and Expenses necessary to produce foreign source income.
- Expenses for income tax and deferred tax.
- Expenses for the acquisition of supermarkets and similar businesses.
- Other expenses deducted for gross income (all of the above concepts are considered necessary expenses to produce income and represent a subtraction for the result).
- Monetary correction of debit balance (according to the Article 32 No. 1being a subtraction for the result as an adjustment to net income).
- Monetary correction credit balance (according to the Article 32 No. 2being a sum for the result as an adjustment to net income).
- Rejected expenses not subject to the taxation of the Article No. 21 paragraph No. 2.
- Financial depreciation of the year.
- Taxable income not recognized financially.
- Added expenses for donations.
- Expenses that must be added to the liquid income imposed according to the Article 33 No. 1 (all the above concepts are considered added to net income and represent a sum for the result).
- Tax depreciation for the year.
- Goodwill tax expenses for the year.
- Specific tax on mining activity.
- Rejected expenses subject to the taxation of the Article No. 21 Inc. No. 1.
- Rejected expenses subject to the taxation of the Article No. 21 Inc. No. 3.
- Other games.
- Income exempt from first category tax according to the Article 33 No. 2.
- Dividends or/and corporate profits according to the Article 33 No. 2.
- Expenses accepted for donations.
- Non-rental income according to Article No. 17.
- Losses from prior years as established in the Article 31 No. 3.
- Withdrawals or distributions affected by Complementary Global Tax received in accordance with the provisions of the Article 33 no. 5.
- Increase of the final paragraph of the Article 54 No.1 and Articles 58 No. 2 and No. 62.
- Deduction according to letter C of the Article No. 14.
- Deduction according to the final paragraph of the Article 14 No. 5 in the letter A (all the previous concepts are considered net income deductions and represent a subtraction for the result).
- Income received or accrued exempt from the substitution tax of accumulated income but that is related to the IGC or AI.
- Other amounts received or accrued not considered for the liquid tax income or the exempt income that is related to the IGC or AI (These concepts are considered as a determination of income to be attributed, which is added to the total).
- Subject to the rules of the Article 14 No. 1 of the Income Tax Law in the letter C
- Subject to the rules of the Article 14 of the Income Tax Law in the letter A
- Subject to the rules of the Article 14 No. 2 of the Income Tax Law in letter C (only for natural persons/individual entrepreneurs)
- Income Attributed by third parties at the end of the line of business as established in the Article 38 bis No. 1 (all the above concepts are considered income attributed to third parties and represent a subtraction for the result).
Who are obligated
The 1923 affidavit or 1923 form must be presented to the Internal Revenue Service by all taxpayers (partners, businessmen, shareholders, community members, among others) who are beneficiaries of the income system attributed by obligation or choice.
The form 1923 must be filed during the fiscal year up to the date March 22 of each year or the business day prior to this of falling on a weekend or holiday.
As a delimitation, all individual entrepreneurs, that is, natural persons, must present the form 1923 before filing your annual income tax return (the form 22). This period constitutes the month of April and the first days of May, usually until on the 15th of the month.
All taxpayers who file the form 1923 with delay or omit their delivery completely will be sanctioned as established in the Article 97 No. 1 of the Tax Code. This means that the fine will be from one monthly tax unit to one annual tax unit depending on what is determined by a court.
If the affidavit is delivered incomplete or with errors, it will be penalized under the provisions of the Item No. 109 of the Tax Code. See that the fine varies between the amounts of the one% of the annual tax unit up to the 100% of this, or even three times the amount if you seek to evade the tax.
There are two ways to request, fill out and submit your form 1923 Before the deadline expires: through the online service or by going to an office.
- Enter the website of the Internal Revenue Service pressing here.
- Select, among the different shipping alternatives, the option of «Send or correct sworn statement by electronic form».
- Write your RUT and unique password. You can quickly create an account if you don’t have one.
- Mark the period to declare.
- Press the option of 1923 affidavit or 1923 form.
- Complete the information that we already explained in the instructions at the beginning.
- Attach the form and «send».
- You already sent your form 1923 and declared your income in front of the SII!
- Visit one of the offices of the Internal Revenue Service in your region or commune.
- Ask for a copy of the form 1923.
- Request the ticket that indicates the day you must go to deliver your sworn statement.
- Fill in the form with the information mentioned above.
- Go to the office! Check the day you were assigned and submit your form 1923 complete and without errors.
Declaring your contributions has never been so easy. With the forms and different affidavits offered by the Internal Revenue Service there is no way that you can not attest to your payments and income during your entire tax year.
Do not wait more. If you want to declare your income as soon as possible, the form 1923 is the tool at hand you need to go through this process.
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