EN 
ES 
WE WISH TO REMIND ALL SHAREHOLDERS AND PARTICIPANTS ABOUT THE SUBSTITUTIVE TAX FOR FINAL TAXES (ISFUT) PAYMENT OPTION AND THE INSTRUCTIONS THAT MAY BE PROVIDED BY THE SHAREHOLDERS OF COCA-COLA EMBONOR S.A. DUE TO THE DIVIDEND PROPOSED FOR THE EXTRAORDINARY MEETING OF SHAREHOLDERS CALLED FOR NOVEMBER 8, 2021:
1.- In a meeting held on October 20, 2021, the Board of Coca-Cola Embonor S.A. ("the Corporation") agreed to call an Extraordinary Meeting of Shareholders ("the Meeting") at 10:00 a.m. on November 8, 2021, at El Golf N° 40, 4th floor, Las Condes, Santiago, (this Meeting can also be attended remotely) to approve the payment of an eventual dividend chargeable to the profits accrued from previous years by the Corporation, which are of $48,423,771,857. This dividend corresponds to the amount of $92.38095 per share of the Series A stock and $97.00000 per share of the Series B stock, payable from November 19, 2021, to the shareholders registered in the Shareholders Register at midnight of November 13, 2021.
The preceding was informed through an Essential Fact on October 20 to the Financial Market Commission (Comisión para el Mercado Financiero) and the market, publishing a first notice of meeting on October 22, 2021, in El Mercurio de Santiago and La Estrella de Arica newspapers.
2.- La Sociedad ha comunicado por correo a los accionistas a través del DCV Registros y, a su vez, ha informado a través de su página web: https://www.embonor.cl/informacion-de-interes-jea, stating that in regard to the eventual dividend that the Meeting agrees, that the shareholders that decide to may access the legal provisional and optional regime that considers the payment of a substitutive tax for final taxes (this is, a substitutive tax for a supplementary global tax or additional tax) also known as "ISFUT," under provisional Article 25 of Law 21 210 and the information contained in Circulars 43/2020 and 39/2021 and Official Letters 215/2021 and 2762/2021 from the Internal Revenue Service - SII (hereinafter "SII Regulation.")
This note reiterates the information provided and includes the corresponding Instructions Form that must be sent to the Corporation by those who choose to apply the ISFUT payment regime:
- Following provisional Article 25 of Law 21 210 and the SII Regulation, those taxpayers subject to the First Category Tax determined based on full accounting records, as in the case of the Corporation, and that at the end of business years 2020 or 2021 register taxable profits generated until December 31, 2016, and that as such, retain any final taxes outstanding, may choose to pay the ISFUT with a 30% rate, on the part of or the entire remainder, with a deduction as a credit of the corresponding first category tax. Considering the preceding, it is informed that after deducting these credits, the applicable effective rate for the ISFUT in the case of Coca-Cola Embonor S.A is 10.11%.
- After filing and paying the ISFUT, the entire taxation with the tax income of the amounts subject to the ISFUT regime is met. These may be distributed by the Corporation giving preference to other profits without being subject to general allocation orders.
- Regarding the dividend that is agreed to be distributed by the Extraordinary Meeting of Shareholders on November 8 (the " Meeting of Shareholders"), the Corporation's shareholders that are entitled to receive such dividend may instruct in writing for the Corporation to pay the ISFUT by way of the tax income law that corresponds to the dividend to which they are entitled, according to the number of shares that they inform and that are registered under their name by midnight of November 13, 2021 (date agreed on the notice of Meeting.)
- For the preceding, the shareholders who decide to choose this option will have to provide notice to the Corporation authorizing to deduct and use 10.11% of the dividend on those shares to pay the corresponding ISFUT. These shareholders will be in charge of the payment of the corresponding amount of that tax, and thus it will be neutral for the Company. The remainder of the dividend will be transferred to the shareholder as usual.
- Instructions: Those shareholders that decide to instruct the Corporation to manage and obtain their dividends as indicated previously must complete the Instructions Form provided at the end of this document and send it to the Corporation by November 15, 2021, at 2:00 p.m.
IMPORTANT: Those shareholders that maintain their shares in custody at a brokerage firm (or through a custodian bank) must request them to send the ISFUT Payment Instruction Form to the Corporation, as per the instructions provided in the form.
- Regarding the shareholders that decide not to send those instructions, it will be understood irrevocably that they have chosen to make their dividends subject to the general taxation regime applicable to that income, without the need to send a notice to the Corporation. They will receive the dividend for the total amount agreed in the Meeting of Shareholders. The corresponding income will be subject to the general taxation rules applicable to this type of income (Article 14 A No. 4 of the Income Tax Law and SII's Circular No. 73 of 2020.)
- The Corporation states that this document is provided for informational purposes only, based on the aforementioned legal regulation and the Regulation of SII. It does not intend to give any specific recommendations. Any decisions made by the shareholders regarding the subject matters addressed are of their responsibility and will depend on their independent analysis.
Download the Instructions Form for the ISFUT
payment option - Coca-Cola Embonor S.A.
https://www.embonor.cl/formulario-instructiciones-ISFUT
This Newsletter is for information purposes only, and any decisions are the sole responsibility of the shareholders.
For more information, please contact the
Shareholders Service Department.
