Negotiations and main proposals for the “Tax Pact” 

Yesterday the first stage of negotiations between political parties concluded to lay the foundations for the so-called “Tax Pact for Development”, a set of measures promoted by the Government after the rejection of the idea of ​​legislating on the Tax Reform promoted by the Executive. In the tax area, the proposal seeks to increase oversight of compliance with tax obligations, eliminate exemptions and establish a series of incentives to promote economic growth. 

Among the measures promoted by the Ministry of Finance is the elimination of the VAT exemption on the importation of goods, the reduction of avoidance margins for the inheritance tax and the introduction of the figure of “substantial collaboration” in the prosecution of tax crimes as an element that allows the eventual applicable penalties to be reduced. 

Finally, it highlights the Government’s intention to empower the Chilean Internal Revenue Service for the administrative application of the general anti-avoidance rule, without prior appeal before the Tax and Customs Courts, although admitting the possibility for the taxpayer to present their opposition. 

It is expected that the Government will present a new document with the agreements and dissents to the political parties involved in the negotiation and a course will be set to advance the future bill that contains the agreed measures. 

For more details, you can access the Executive’s presentations at these links:
Síntesis Pacto Fiscal / PPT Pacto Fiscal – Cumplimiento de obligaciones tributarias

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