Compliance and up-to-date fixed assets for suppliers and companies in the mining sector.

The mining royalty does not apply to suppliers or most SMEs in the sector.

There is common confusion about whether the Specific Tax on Mining Activity (Law No. 21,591, in force since January 1, 2024) affects any company working in the mining sector. This is not the case, and there are two reasons for this: because passive subject and for the thresholds.

The taxpayer is solely the mining operatorA mining company is someone who extracts and sells mineral substances they own. If your company provides services, leases machinery, or sells supplies to a mining company, never He is subject to this tax because he does not sell his own ore. And Article 11 of the same law expressly excludes small-scale miners, artisanal miners, and small-scale prospectors.

Your tax burden follows either the general regime or the Pro Pyme regime, depending on your size, just like any other service company. It's worth making this explicit in contracts with mining companies to avoid any ambiguity about who is the taxpayer for each stage of the transaction.

Mining machinery can depreciate in one-third of the normal time

The SII's useful life table sets a lifespan for machinery and equipment intended for heavy work in mines and processing plants. normal lifespan of 9 years. But the tax regime under which your company is taxed completely changes the outcome:

The Pro Pyme regime line deserves special attention in mining, because equipment is expensive and is rarely paid for in cash. An asset acquired in December and paid for in March of the following year does not generate the expense in the year of purchase. In a business operating under Pro Pyme, the date the money is transferred can be more important than the invoice date, and the difference is decided at the end of December.

In addition to the VAT refund of Article 27 bis On the same investment, a well-planned machinery purchase generates significant cash relief in the same year — but only if it is declared with the correct mechanism from the beginning.

Remote work expenses are objected to due to lack of documentation, not because of their nature.

Law No. 21,210 changed the concept of necessary expenditure and the SII incorporated it into the Circular No. 53 of 2020. The old interpretative requirement of inevitability has disappeared: today it is enough that the expense has ability to generate income and is linked to the shift. It's good news that's been poorly utilized, because the flexibility was gained in the concept, not in the test.

Article 21 of the Income Tax Law continues to apply its taxation of disallowed expenses —with a rate of 40%— when the taxpayer cannot prove the nature and effectiveness of the expenditure. Issuing a third-party receipt at the time is cheaper than disputing the expense three years later.

Frequently asked questions

Does the mining royalty (Law 21.591) affect me if I am a supplier or contractor for a mining company?

No; the royalty is levied only on the mining operator who extracts and sells the mineral, starting at a scale of 12,000 tons of fine copper annually—far exceeding that of any small or medium-sized service company. This distinction should be made explicit in contracts with mining companies to avoid any ambiguity regarding who is the taxpayer at each stage of the operation.

Can I depreciate the machinery I buy for mining work faster?

Yes, if the asset is new or imported by your company, the Chilean Internal Revenue Service (SII) table allows for accelerated depreciation (at one-third of the normal useful life). Accelerated depreciation doesn't change the total expense over the asset's life, but it does concentrate the tax benefit in the early years—especially useful if you expect high profits right after a large investment.

How do I recover the VAT on a large investment in equipment?

Through Article 27 bis, which allows for the early recovery of remaining tax credits without waiting to generate sufficient sales revenue, we offer a free calculator to estimate this amount. The process has specific deadlines and supporting documentation requirements with the Chilean Internal Revenue Service (SII), so it's advisable to apply as soon as the conditions are met and not wait until the annual income tax return to regularize the situation.

What about accommodation and transportation expenses while on the job site?

These expenses are deductible if they are properly documented and related to your business activities. We help you maintain the necessary supporting documentation, a common focus of the Chilean Internal Revenue Service (SII) in this area. Maintaining contracts or internal travel expense policies, in addition to receipts or invoices, helps prove that the expense is indeed related to business operations and not an undeclared personal benefit.

Under which tax regime should my mining services company be?

It depends on your size and projected revenue; we assess whether the Pro Pyme regime or the general regime is more suitable. This assessment should be repeated periodically, because the typical growth of a mining supplier (starting small and scaling quickly with new contracts) can force you out of the Pro Pyme regime sooner than expected.

Does the small-scale artisanal mining regime apply to my company?

Generally, no, if you operate as an organized company or service business; that tax regime is specifically for small-scale artisanal and small-scale miners. If your business started as an artisanal operation and grew over time, it's advisable to review when it actually ceased to qualify for that special tax regime, to avoid filing under a regime that no longer applies.

Do they serve companies that only provide services to the mining industry, without extracting minerals?

Yes, this is our most frequent client profile in this sector: transportation, machinery rental, maintenance, and other services contracted by mining companies. We are familiar with the specifics of invoicing large mining companies (payment terms, supplier requirements, contractual withholdings), which are different from those of a typical commercial client.

What do I need to start working with you if I already have overdue accounting?

We start with a diagnosis of the current state of your accounting and create a regularization plan with clear deadlines for compliance with the Chilean Internal Revenue Service (SII). The more specific the business sector—such as services for remote work sites—the more important it is to regularize quickly, because the supporting documentation (receipts, certificates, logs) becomes more difficult to reconstruct the longer the time passes.