Chilean Tax Authority Clarifies Deductibility of Carbon Credits

The Chilean tax authority (Servicio de Impuestos Internos - SII) has published Letter Ruling No. 1529 of 22 June 2026, which clarifies the deductibility of carbon credit purchases considering amendments to Article 31 of the Chilean Income Tax Law that entered into force in 2020. Article 31 concerns the qualification of deductible expenses in determining taxable income. Prior to 2020, the purchase of carbon credits to offset a company's own emissions was generally rejected as a deductible expe…