EN 
ES 
Dear Participants,
In a meeting held on March 31, 2022, the Board of Empresas Hites S.A. (the "Corporation" or "Hites") has agreed to propose in the Annual General Shareholders' Meeting to be held on April 29, 2022, the distribution of a dividend equivalent to $11.1647 per subscribed and paid share of the Corporation, chargeable to the profits of 2021. The mentioned dividend will be proposed to be made available to the shareholders from April 29, 2022, after the Annual General Shareholders' Meeting. Those shareholders registered in the Corporation's Shareholders' Register by midnight of the fifth business day before the aforementioned payment date, April 23, 2022, will be entitled to it (the "Shareholders.")
We would like to inform you that the proposed dividend is added to the interim dividends agreed to be distributed in the Board meetings of September 30, and November 25, 2021, chargeable to the profits of 2021, and that together account for 30% of the distributable net profits of the year ended on December 31, 2021, minimum amount, legal, and mandatory, to be distributed as dividend by Public Corporations according to article 79 of Law 18046 unless unanimous agreement on the issued shares.
The Corporation 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 instructions provided by the Internal Revenue Service ("SII"), specifically, those contained in Official Letter 2762 issued by SII on October 13 of this year ("Of. Lett.) 2762".)
Considering the above, we wish to inform the following:
- According to Of. Letter 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 Hites 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. Based on the above, after deducting such credits, it is informed that the effective rate on the amount subject to the ISFUT regime in the case of Hites is 24.5155%.
- 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 Hites, giving preference to other revenue without being subject to the general orders of allocations considered in the Tax Income Law.
- Considering the above, regarding the Dividend payment that must be approved by the Annual General Shareholders' Meeting, and as a way to provide certainty to the exercise of this option according to Of. Letter 2762, Shareholders may instruct the Corporation to pay the ISFUT for the entire or part of the dividend that corresponds to them, according to the number of shares registered under their name, by midnight of April 23, 2022.
- Those shareholders that decide not to pay the ISFUT will receive the entire Dividend agreed upon in the Board 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.
- The Shareholders that instruct Hites to pay the ISFUT for all or part of the shares under their name by midnight of April 23, 2022, will authorize that 12.83915% of the amount of the Dividend that belongs to them in account for those shares be used by Hites to pay for the ISFUT. In this way, these Shareholders will be in charge of the payment of the corresponding amount of that tax.
- For good administrative purposes, those shareholders that wish to exercise this option must send the "Payment Instructions for the Substitutive Tax For Final Taxes (ISFUT)" form by April 26, 2022. After that date, we must assume that the Shareholders that have not sent the instructions have chosen to keep their Dividend under the general tax regimen applicable to that income.
- 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 Important Facts on Hites' website:
(https://inversionistas.hites.com/web/hites-inversionistas/hechos-importantes)
and the website of DCV Registros (www.dcv.cl) in the "Newsletter" section under the "News Center" menu.
Instructions Form for the ISFUT payment
option of Empresas Hites S.A.
Statement Letter on the Payment of the Substitutive
Tax For Final Taxes (ISFUT) of Empresas Hites S.A.
The information provided in this document has been outlined based on Law 21 210, Circulars 43/2020 and 39/ 2021 of SII, and Official Letters 215/2021 and 2762/2021 of SII, as indicated before.
Hites 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. Under no circumstance may this document be understood as tax, financial, accounting, legal, or other advice. Empresas Hites S.A 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.
For more information, please contact the
Shareholders' Service Department.
