Last Thursday, June 9th, the Ministry of Finance submitted different instructions to the Senate regarding the Fintech Law project. Its objective is to make clarifications to the project in parliamentary process in the Senate’s finance commission, among which the following can be highlighted: the reinforcement of the security measures of the system regulated by the Law under discussion; the affirmation that both Compensation Funds and General Fund Administrators may be part of the entities that provide Fintech-type services; and improvement of the registration and authorization system of the entities considered as Fintech for their services.
Regarding tax obligations, it is indicated that the annual information obligation of Fintech entities to the Internal Revenue Service, on balances and transactions, be explicitly indicated in order to be able to apply Income Taxes (first category and additional), Value Added Tax and/or Stamp Tax, or other applicable taxes depending on the nature of the operations. The form and term must be established by the IRS by resolution. This indication goes hand in hand with the faculties that the Tax authority has today in order to avoid fiscal damage in tax matters and the role that Fintech entities have within the financial market.
It seeks to have a regulatory framework for the development of technology and innovation in the Chilean financial industry, and to have better conditions in regulatory matters, economic conditions, legal certainties and security.
For more information, you can read our article with the details of Exempt Resolution number 46 issued by the IRS on May 13th, which establishes a change to the total VAT subject for services covered by Circular 42 (June 2020). You can also read:
