CAP S.A.: Information and Payment Instructions for the Substitutive Tax for Final Taxes (ISFUT)

Dear Participants,

We wish to inform you that CAP S.A. (hereinafter, “CAP” or the “Corporation”) due to final dividend distribution No. 137 (the “Dividend”), which will be proposed in the next Shareholders’ Annual General Meeting (the “Shareholders’ Meeting”) of the Corporation and to which those shareholders that are registered as such by midnight of April 19, 2022, makes available to those shareholders that wish to make use of it a procedure to pay the Substitutive Tax for Final Taxes (this is, a global, supplementary or additional global tax) for the accumulated profits in the Taxable Profits Funds (“ISFUT”), according to the considerations in provisional article 25 of Law 21210 and the instructions provided by the Internal Revenue Service (SII), specifically, those contained in Official Letter 2762 of October 13, 2021 (“Official Letter 2762”).

For this, we wish to inform the following:

1. According to Official Letter 2762, shareholders can choose to pay the ISFUT with a 30% rate on a part or the entire balance of the accrued taxable income generated until December 31, 2016; that CAP as a taxpayer subject to the first category tax determined based on full accounting records, keeps at the end of the business year of 2020 or 2021, with a deduction as credit of the corresponding first category tax.
2. The payment of the ISFUT allows considering the payment of the supplementary or additional global tax as completed, as appropriate. It may be distributed by CAP, giving preference to other revenue without being subject to the general orders of allocations considered in the Tax Income Law.
3. Those shareholders that decide not to pay the ISFUT will receive the entire Dividend agreed upon in the Annual General Meeting, and their corresponding profits will be subject to the general tax rules applicable to these types of income (according to article 14 A No. 4 of the Income Tax Law and Circular No. 73 of 2020, of SII.) The same will apply to those shareholders that have not communicated on time their decision to pay or not to pay the ISFUT to the Corporation.
4. The Shareholders that instruct CAP to pay the ISFUT for all or part of the shares under their name by midnight of April 19, 2022, will authorize that 12.98% of the amount of the Dividend that belongs to them in account for those shares be used by CAP to pay for the ISFUT. In this way, these Shareholders will be in charge of the payment of the corresponding amount of that tax.
5. For good administrative purposes, we would like to remind you to do so by 6 p.m. on April 20, 2022. After that date, it will be assumed that the shareholders that have not sent the instructions have chosen to keep their final dividend under the general tax regimen applicable to that income.
6. Due to the above, these instructions must be completed according to the attached instructions and sent to the following email address: This email address is being protected from spambots. You need JavaScript enabled to view it. with a copy to This email address is being protected from spambots. You need JavaScript enabled to view it..

This information and the mentioned instructions have been published as useful information for the market on CAP’s website (www.cap.cl) and on DCV Registros’ website (DCV Registros) in the “Newsletter” section under the “News Center” menu.

Instructions Form for the ISFUT
payment option of CAP S.A.

Download

Statement Letter on the Payment of the Substitutive
Tax For Final Taxes (ISFUT)” of CAP S.A.

Download

The information provided in this document has been outlined based on provisional article 25 of Law 21 210, Circulars 43/2020 and 39/2021 of SII, and Official Letters 215/2021 and 2762/2021 of SII, as indicated before.

Although this information has been published as useful information, CAP does not issue any opinions on the convenience of choosing a specific tax treatment for the issues addressed in this document. It is not responsible for the decisions shareholders may make in those regards. Under no circumstance may this document be understood as tax, financial, accounting, legal, or other advice.

The Corporation recommends its shareholders to check their tax and legal situation before making any decisions regarding the issues addressed in this document and encourages them to obtain independent advice to make an informed decision.

For more information, please contact
the Shareholders Service Department.

This email address is being protected from spambots. You need JavaScript enabled to view it.  +56 223 939 003