LEY NÚM. 21.622

ESTABLE REQUIREMENTS FOR THE SYSTEM OF CULTURAL SERVICES TO PROFESSIONAL

Bearing in mind that the H. National Congress has approved the following

Bill:

"Unique item. Incorporate into the Law on Donations for Cultural Purpose, contained in the Article 8 of the Act No. 18,985which establishes rules on tax reform, the following Part V, passing the current Title V to be VI:

"TITLE V

Exemption of Value Added Tax in the Provision of Cultural Services

Article 12 bis.- The cultural services provided by cultural associations, in accordance with the provisions of this law, shall be exempt from the Attached Value Tax established in article 1 of Decree Law No. 825 of 1974 of the Ministry of Finance, Law on Sales Tax and Services.

For the purposes of this article, unless the nature of the text implies another meaning, it shall be understood by:

(a) Cultural services: those services directly linked to research, training, mediation, management, production, creation and dissemination of cultures, arts and heritage.

These effects include, among others, activities related to audiovisual, musical and performing arts; exhibitions and interventions of visual arts and crafts; performing works or assemblies; book editing; seminars, lectures, lectures and training workshops, related to cultural artistic activity. Activities leading to knowledge, access, recognition, revitalization and safeguarding of heritages are also included.

(b) Cultural associations: companies or companies that meet the following requirements:

I. They are composed exclusively of natural persons, who must work effectively in the provision of cultural services.

ii. That the total income from activities other than the provision of cultural services does not exceed 35 per cent of the total gross income of the rotation within the immediately preceding calendar year.

iii. Let them endominate personal work - physical or intellectual - on the employment of capital.

Cooperatives established and governed by the Decree No. 5 of 2004 of the Ministry of Economy, Development and Reconstruction, which sets out the consolidated, agreed and systematized text of the general cooperative law, shall also be considered as cultural associations, provided that they meet the requirements set out in this letter.

Cultural associations shall also be considered, provided that they are not for profit and provide cultural services, corporations and foundations; functional community organizations formed in accordance with Law No. 19.418, on Boards of Neighbors and other community organizations, whose consolidated, coordinated and systematized text sets out Decree No. 58 of 1997 of the Ministry of the Interior; public interest organizations regulated by Law No. 20.500, on Public Administration and Labour Participation in the Ministry of the Republic of Europe. When one of the partners or associates of the organizations mentioned in this paragraph is a legal person, it must, in turn, be considered a cultural association, and it must therefore meet the requirements set out in this letter.

For the purposes of this waiver, the Internal Revenue Service will be responsible for monitoring the correct compliance with the requirements set out in this article, and may request the cultural associations the information it deems necessary for that purpose and the information that allows them to qualify as a cultural service to a particular activity. For this last purpose, the Ministry of Cultures, Arts and Heritage may require a report or opinion on a particular activity, which must be issued within thirty working days. In addition, for the purposes of carrying out the above-mentioned report, the Ministry may cite and require background to cultural associations, in accordance with the procedure established by resolution.

Without prejudice to its other powers of control, the Internal Revenue Service will create and maintain a register in which cultural associations should be registered to access the exemption, for which they will accompany an affidavit in which they manifest cultural services. The registry should be updated annually, as long as they remain in the registry. The Internal Revenue Service shall, by resolution, determine the background to be included in the registry, the information to be contained in the affidavit, and its form and time of submission.

Cultural associations that fail to comply with the requirements set forth in this article will lose the exemption from the month following that in which the breach occurred, and shall be governed by the general rules contained in Decree Law No. 825 of 1974, of the Ministry of Finance, Law on Sales Tax and Services.

The activities carried out by cultural associations other than the provision of cultural services, in accordance with the definition set out in this article, shall be governed by the general rules, taking into account the nature of such activities. ".

Transitory article.- The amendments incorporated by this law shall enter into force on 1 May 2023.

However, for the purpose of accessing the benefit, the obligation set out in article 12 bis, which is introduced, will be required from 1 January 2024. ".

And for I have had it good to approve and punish it; therefore, promute and take it into effect as the Law of the Republic.

Santiago, November 10, 2023.- GABRIEL BORIC FONT, President of the Republic.- Mario Marcel Cullell, Minister of Finance.- Carolina Arredondo Marzán, Minister of Cultures, Arts and Heritage.

What I write to you for your knowledge.- Greetings Atte. to you, Heidi Berner Herrera, Undersecretary of Finance.