RT2022: Isabel Espinoza comments on the modifications on inheritances and donations taxes
Today in Diario Financiero newspaper, our partner, Isabel Espinoza points out that “the most relevant modification is related to the valuation of the assets that are part of the estate (or that are donated). In this regard, the Reform introduces a complex set of rules applicable to different types of assets, with countless cross-references, which will surely generate various interpretation problems and difficulties in the application. Likewise, in certain cases it is required to certify the market value of the assets through reports prepared by independent agents, which, although it may be reasonable and necessary for certain specific...
TR2022: Juan Cristóbal Ortega alerts about the effects on investment
Our partner, in Diario Financiero newspaper, comments on the possible effects of taxing retained earnings in investment companies and affirms that they “provide a good reason for the profits of a business to remain in Chile and not be remitted abroad, triggering taxes. This generates an incentive...
Tax Treatment of Life Insurance with Savings
Circular No. 21 of 2022 Life insurance with savings includes, together with coverage for the risk of death, disability or others, the accumulation of savings in a single investment account ("CUI"), whose funds can be fully or partially withdrawn by the insured beforehand upon...
A Chilean Cryptocurrency
The Central Bank, within its mandate to ensure the normal functioning of internal and external payments, has addressed the relevance of issuing a digital currency (MDBC for its initials in Spanish), considering the current progress in the digitization of transactions. As a...
Guaranteed Minimum Income Subsidy: New employer obligation
On May 3rd, 2020, Law No. 21,218 came into effect, creating a Subsidy to achieve a Guaranteed Minimum Income. The subsidy is an economic aid from the State for dependent workers with ordinary working hours (that is, more than 30 hours), which allows workers to increase their...
Modifications to the tax treatment of life insurance
On February 4th, 2022, Law 21,420 was published and modified Law 16,271 on Tax on Inheritance, Assignments and Donations, and eliminated the exemption that Article 20 contained regarding life insurance, consequently taxing the indemnities that the beneficiaries could receive at...
CFM Public Consultation: Information on Debtors of Financial Institutions
The General Law of Banks establishes the banking reserve in relation to the debt information of people in the banking system, except for justified exceptions in the delivery of said information that the law itself contemplates. In line with the foregoing, article 14 of the...
About the US-Chile Tax Treaty
On March 29th, the US Committee on Foreign Relations (the "Commission") approved the resolution ratifying the agreement to avoid double taxation between this country and Chile (the "Treaty"), subject to two reservations, and proposed to the full Senate (the "Full") to provide...
ISFUT: Last week to use this benefit
This Friday, April 29th, is the deadline for taxpayers of the First Category Tax, who maintain accumulated profits prior to the year 2017, to qualify for the payment of a Substitute Tax (ISFUT) with a rate of 30%. About the Substitute Tax of the Final Taxes- ISFUT The tax...
Mining Royalty: The Real Debate
Alex Fischer states, in an opinion column published today by Diario Financiero, that the discussion on the mining royalty should focus on achieving a greater contribution without implying a disincentive to invest. This would be achieved without the need to change its structure,...
General procedure for reappraisal of non-agricultural real estate and means of contesting appraisals
On January 1st, 2022, the non-agricultural real estate reassessment process came into effect. This process, which is carried out massively and simultaneously every 4 years, reaches a total of 7,486,473 real estates, of which 74%, that is 5.5 million, correspond to properties...