Chilean Tax Reform
A new project to reform and modernize the Chilean tax system, and boost investment in the country, was presented by the government of President Sebastián Piñera on August 23, 2018. Through this website, and as with the two previous tax reforms, Carey will offer an analysis of the main proposed changes.
Tax Reform 2020
After almost two years of legislative discussion, Law No. 21,210 was published last Monday, February 24, with the objective of modernizing tax legislation. In order to facilitate its understanding, the following is a description of the main reforms incorporated.
Amendments to the tax system
Capital gains regulation
Disproportionate distributions
Expense deductibility
Regulations for financial operations
Taxation on individuals
New rules for foreign investors
Foreign investments made by Chilean-residents
Tax compliance regulations
Special Programs
Taxpayers’ rights
Audits and taxpayers´ defense
Legal tax claim procedure
Taxpayer’s protection office
VAT on digital services
Taxable event service
VAT on real estate sales
VAT tax credit on construction
VAT on the leasing of furnished or equipped properties
VAT return and recovery
Other regulations
Inheritances and Donations Tax (“IDT”)
Updates
December 18th, amendments
In order to materialize the “memorandum of understanding” reached by the Chilean Finance Ministry and the Senate Finance Committee on December 18, 2019, the amendments to the Tax Modernization Project were presented for their legislative discussion, which are focused on SMEs, entrepreneurship and economic growth.
If the Tax Modernization Project is approved by the Senate, it will be sent back to the House of Representantives, as the originating Chamber. Once the amendments made by the Senate are approved by the House of Representantives, the bill will be sent to the President of the Republic to proceed with the final procedures of approval, enactment and publication of the law.
Amendments to the tax system
Surcharge of Real Estate Tax
Regulation for financial operations
Other regulations
General anti-avoidance rule (“GAAR”)
Instant depreciation
Special Programs
Taxation on individuals
Foreign Investors
Foreign investments made by Chilean-residents
Audits and taxpayers´ defense
Tax litigation
May 8th, amendments
Bill´s Proposals
- Amendments to the tax system
- General anti-avoidance rule (“GAAR”)
- Expense deductibility
- VAT Law
- Foreign investors
- Taxation on individuals
- Audits and taxpayers´ defense
- Appraisal authority and tax-free reorganization rules
- Foreign investments made by Chilean-residents
- Financial operations
- Tax compliance
- Digital Services
- Special Programs
- Non-profit organizations
- SME’s tax system
- Green Tax
- Estate and gift tax