The Capital Markets Reform bill, known as MK4, is stepping into a key stage this week. The proposal is currently under review in the Chamber of Deputies and is waiting for a plenary vote. In the meantime, the Executive has submitted a series of amendments aimed at strengthening and refining its core objectives.
Following the October 16th deadline for submitting amendments, the Finance Committee of the Chamber of Deputies is expected to begin its article-by-article review and voting process. Once this stage is completed, the Committee will issue its first report, and the bill will move to the Chamber floor for further consideration.
While much of the public debate has focused on the proposed National Housing Fund (Fonavi, for its initials in Spanish), the amendments and the broader legislative discussion have also highlighted several measures designed to encourage investment and improve access to financing for businesses of different sizes.
Among them is the creation of a special stock market segment for emerging companies and mining exploration projects, commonly referred to as a “junior exchange.” The proposal seeks to reduce regulatory barriers and facilitate access to capital markets for early-stage companies through requirements tailored to their size and stage of development. The amendments would allow foreign companies to be listed, and grant stock exchanges the authority to establish the rules governing the segment.
In addition, the Executive’s amendments introduce a new venture capital investment promotion framework, aimed at attracting resources to innovative companies and high-growth ventures. The initiative includes tax incentives and special financing mechanisms intended to bring Chile closer to models used in other developed markets.
Another important aspect of the reform focuses on strengthening the participation of non-resident foreign investors through regulatory adjustments designed to facilitate cross-border investment activities.
The bill would also expand the range of instruments eligible for the benefits provided under Article 107 of the Income Tax Law. Among the changes proposed and refined through the Executive’s amendments is the inclusion of certain foreign publicly offered securities traded on authorized Chilean stock exchanges, provided they meet the applicable registration or exemption requirements. The proposal also replaces the traditional stock market presence requirement and goes in the free float thresholds, extending the regime to closely held companies, eligible derivatives, and other financial instruments.
Currently, Article 107 applies only to Chilean securities traded on local exchanges, leaving foreign securities outside its scope. If enacted, the reform would allow local investors to access internationally issued assets listed in Chile without being taxed on the resulting capital gain, subject to the rules established by the Financial Market Commission (CMF, for its initials in Spanish) and the Chilean Internal Revenue Service (SII, for its initials in Spanish).
The amendments released to date also introduce adjustments relating to corporate governance and the protection of minority shareholders. Some of these changes are intended to strengthen safeguards for minority investors compared with those contemplated in the original version of the bill.
In addition, the initiative continues to evaluate changes affecting the tax treatment applicable to certain investment funds and publicly offered investment vehicles, including matters related to VAT, as part of a broader regulatory modernization package aimed at strengthening the development of Chile’s financial market.
The amendments also seek to establish a special regime under which, subject to certain requirements, dividends and capital gains earned by Chilean holding companies from foreign subsidiaries would be exempt from First Category Income Tax, with the objective of positioning Chile as a regional platform for channeling investments.
Beyond the measures related to housing finance, the MK4 debate is increasingly focused on how to restore depth to Chile’s capital markets, expand the availability of financing for growing businesses, and create more attractive conditions for both domestic and international investment.
The decisions adopted by the Finance Committee during the coming days will be critical in determining the final scope of the reform.
Information updated as of October 2026.
Javiera Muñoz, Senior Associate, Tax Team, Fischer y Cía