EN 
ES 
Dear Participants,
We wish to inform you that Falabella S.A. (hereinafter, indistinctly, "Falabella" or the "Corporation"), due to the dividend payment and distribution that will be informed and subjected to voting in the Shareholders' Annual General Meeting, called for April 19, 2022 (the "Meeting") makes available for those shareholders that wish to make use of it, a procedure to pay the Substitutive Tax for Final Taxes for the accumulated profits in the Taxable Profits Funds ("ISFUT") of the Corporation, according to the considerations in provisional article 25 of Law 21210 and the instructions provided by the Internal Revenue Service ("SII"). This optional regime is valid until the last business day of April 2022 for the balance of the accumulated profits that have not been taxed by December 31, 2021 and registered in the Corporation's FUT registry by December 31, 2016.
For this, Falabella informs its shareholders of the following regarding the ISFUT regime and the procedure to be subject to it:
-
ccording to the criterion of SII in several instructions1, the Corporation's shareholders may choose to pay the ISFUT with a 30% fixed rate on the accumulated profits in Falabella's FUT registry to which they are entitled. Against the determined ISFUT, the credit deduction will be on the first category tax paid by the Corporation on the profits subject to this regime.
-
Once the ISFUT is paid, it will be understood that the profits subject to the said regime have met the entire final tax taxation process, this is, with the global supplementary or additional tax, accordingly, and they may be withdrawn or distributed as appropriate, without being subject to the allocation rules considered in the Income Tax Law.
-
Considering the nature of the substitutive tax for final taxes, the ISFUT paid by the Corporation is charged to the profits subject to the said regime. Due to the above, those shareholders that choose the payment of the ISFUT will do so chargeable to the profits to which they are entitled, to then have their corresponding balance distributed after the amount equivalent to the supported tax has been deducted.
In turn, the Corporation's shareholders who decide not to pay the ISFUT will receive all the profits to which they are entitled, without any deductions. They must be subjected to the general taxation rules and follow the general orders of allocations considered in the Income Tax Law. -
Considering the above, Falabella's shareholders may instruct it to pay the ISFUT on the part or the entire dividend to which they are entitled based on the number of shares registered under their name by April 22, 2022, authorizing the Corporation to make that payment chargeable to the dividend agreed to be distributed. A percentage equivalent to the amount of the supported tax on the profits subject to this regime must be withheld.
To file and pay the ISFUT, Falabella has determined an effective credit rate on the first category tax (or "ERF") of 0.229372 that will be assigned to the taxable profits subject to this regime. Furthermore, the percentage to be withheld on the dividend to pay to those shareholders due to the ISFUT is 13.94396%.
To exercise this option, the shareholders that wish to be subject to the payment of the ISFUT must fill in and submit the "Payment Instructions for the Substitutive Tax for Final Taxes" form to the Corporation by April 26, 2022, at 2 p.m. This form will be available to shareholders on April 4, 2022, on the Corporation's website: https://investors.falabella.com, where it can be downloaded and submitted according to the instructions provided in the form.
Note: The shareholders that keep their shares in custody in 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. -
The shareholders that decide not to be subject to the ISFUT and inform the Corporation of their decision, or who, after the mentioned term in number 4 above, have not submitted the instructions, will receive the entire amount of the dividend as agreed by the Board. It will be subject to the general tax regime of the Income Tax Law.
-
Falabella informs that the dividend payment date that will be proposed to the Board is April 28, 2022, whether shareholders decide to be subject to the ISFUT payment or not.
This information and the mentioned instructions have been published on the following website: https://investors.falabella.com and
on the website of Depósito Central de Valores in the "Newsletter"
section under the "News Center" menu.
Instructions Form for the payment
option of Falabella S.A.
Statement Letter on the Payment of the Substitutive
Tax For Final Taxes (ISFUT)" of Falabella S.A.
FALABELLA 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.
.
For more information, please contact
the Shareholders' Service Department.
