EN 
ES 
Dear Participants,
We would like to let you know that due to the dividend payment and distribution that will be informed and subjected to voting in the General Shareholders' Meeting, called for April 29, 2022 (the "Meeting"), QUIÑENCO S.A., (hereinafter referred to as "Quiñenco" or the "Corporation") makes available to its shareholders a procedure to pay the Substitutive Tax for Final Taxes ("ISFUT") that would affect the distribution of the said dividend, according to the considerations in provisional article 25 of Law 21210 and the instructions provided by the Internal Revenue Service ("SII")(1).
(1)Specifically, among others, Official Letters 215 of and 2762 of 2021 and 762 of 2022.
This optional regime ("ISFUT Regime") is valid until the last business day of April 2022, for the balance of the accumulated profit until December 31, 2016, and that have not been taxed by December 31, 2021 (Accumulated profits in the FUT Registry".)
For this, Quiñenco informs its shareholders of the following regarding the ISFUT regime and the procedure to be subject to it:
- Based on SII's criteria in several instructions, the Corporation's shareholders may choose to instruct the Corporation to pay the ISFUT with a 30% fixed rate on the Accumulated profits in the FUT Registry and may allocate the First Category Tax to the said tax. Shareholders can give these instructions for the Accumulated Profits in the FUT registry of the Corporation or of partner corporations and those related to Quiñenco for the dividends that they distribute to the Corporation and on which there is an option to be subject to the ISFUT Regime.
- After the ISFUT has been paid, the profits subject to that regime will have completely met their final taxation requirements under the Chilean legislation, this is, with the Global Supplementary Tax or with the Additional Tax, as appropriate, and may be withdrawn or distributed as needed, without being subject to the orders of allocation considered in the Tax Income Tax Law ("LIR.")
- Regarding the Substitutive Tax for Final Taxes, the ISFUT paid by the Corporation (or its subsidiaries or related companies, as appropriate) is chargeable to the profits subject to that regime. Due to the above, the shareholders that choose to request the payment of the ISFUT will do it chargeable to the profits to which they are entitled, to then have their corresponding balance distributed once the amount equivalent to the supported tax has been deducted. In turn, those shareholders that decide not to request the payment of the ISFUT will receive all the profits to which they are entitled, without any deductions, and must be subject to the general tax rules and follow the general orders of allocation considered in the Income Tax Law.
- Considering the above, Quiñenco's shareholders may instruct the Corporation to pay directly or indirectly, instructing its subsidiaries or related companies to pay the ISFUT for the entire or part of the dividend susceptible of being subject to the ISFUT regime to which they are entitled, according to the number of shares registered under their name by April 26, 2022, authorizing the Corporation for that payment to be made chargeable to the dividend agreed to be distributed and must withhold from it a percentage equivalent to the amount of tax supported on the profits subject to that regime.
- The option to be subject to the ISFUT regime comes in this case from Corporations' dividends in which Quiñenco has shareholding interest and on which there is an option to become subject to the ISFUT regime.
- The Board of Quiñenco, in a Board Meeting held on April 7, 2022, agreed to propose the distribution of a minimum mandatory dividend of $567,943,692,204, equivalent to 30% of the profits of 2021, out of which $284,767,001,333 were paid for the interim dividend in November 2021. At that moment, the balance to be distributed was $283,176,690,871, corresponding to $170.30525 (one hundred and seventy point thirty thousand five hundred and twenty-five pesos) per share.
- Furthermore, the dividend per share indicated in the above paragraph is as follows: (a) $152.10289 pesos per share are susceptible to becoming subject to the ISFUT Regime, and (b) $18.20236 per share are not susceptible to becoming subject to it. If a shareholder decides to make the dividend described in letter (a) above subject to the ISFUT regime, either for all or part of their shares, the percentage to withhold on that dividend, due to the ISFUT, is 15.26702% of the amount of the dividend to which they are entitled for the shares that they requested to make subject to that regime.
- To exercise this option, those shareholders who decide to become subject to the ISFUT Regime for all or part of their shares must send the "Payment Instructions for the Substitutive Tax For Final Taxes" form to the Corporation by April 26, 2022, at 5 p.m. This form is available to be downloaded by shareholders from April 14, 2022, on the Corporation's website at https://www.quinenco.cl. It must be sent to the Corporation according to its instructions.
- Those shareholders who decide not to become subject to the ISFUT Regime and instruct the Corporation to do so or that have not sent the corresponding instructions by the date indicated in number 8 above will receive the entire dividend as agreed in the Meeting, and they will be subject to the general tax regime of the Income Tax Law.
- Quiñenco informs that the payment date of the minimum mandatory dividend indicated above that will be proposed to the Board is May 2, 2022, whether shareholders decide to become subject to the ISFUT regime.
Note: Those shareholders that keep 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.
This information, together with the mentioned instructions, can be found on the following website: https://www.quinenco.cl/.
Form for the ISFUT payment
option of QUIÑENCO S.A.
Statement Letter on the Payment of the Substitutive
Tax For Final Taxes QUIÑENCO S.A.
Quiñenco does not issue any opinion 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.
