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 to develop new projects and businesses in the country, which naturally means an economic benefit. Therefore, we must be very careful with measures like these, because they can affect reinvestment in Chile.” To read the article, here
Gert Greve: Implications of the proposed new Constitution on the tax system
Our senior associate comments in Diario Financiero newspaper on the novelties that the draft of the new Constitution would incorporate in the tax fundamentals of Chile. To read it, here
Customs and Tax Courts
We share the opinion column of Patricio Casas, senior associate and leader of the Tax Dispute Resolution team, on the Constitutional Convention proposal regarding the Tax and Customs Courts. To read it, here.
VAT on professional services: Real scope of the Tax Reform
Law No. 21,420 (hereinafter, the "Reform") modified the taxable event "service" contemplated in the Law on Sales and Services Tax ("VAT Law"), eliminating the reference to numerals 3 and 4 of the Article 20 of the Income Tax Law (“LIR”). Thus, as of January 1st, 2023, all...
New donations system for charitable purposes
On January 26th 2022, the National Congress approved the new regime that will regulate donations that benefit non-profit entities that dedicate their activities to certain beneficial purposes for civil society. This new regime, which will enter into force on the business day...
Chilean Tax Overview
Following, we share the link to the summary of the Chilean Tax Overview that our partner, Juan Cristóbal Ortega, wrote for Chambers and Partners Global 2022.
Changes to the Electronic Compensation Book
In October 2021, the Electronic Compensation Book (hereinafter, "LRE") became a mandatory monthly record on the platform enabled by the Labor Directorate (hereinafter, "DT") for all employers with five or more workers, replacing the obligation to carry said book in stamped...
Transitory exchange rates for means of payment
On Saturday, February 5th, 2022, the Committee for the Setting of Limits on Exchange Rates published in the Official Gazette the first transitory limits for interchange rates, applicable to all card transactions in Chile. This committee was created by the Constitutional Court...
Bill that reduces or eliminates tax exemptions
Yesterday, January 26th, 2022, the Chamber of Deputies unanimously approved the bills that create the Universal Guaranteed Pension (PGU) and the one that seeks its financing through the reduction or elimination of tax exemptions (the " Project”), thus leaving the initiative...
Ministry of Finance presents new indications to the bill that reduces or eliminates exemptions
In the context of the processing of the bill that seeks to finance the creation of a Universal Guaranteed Pension ("PGU"), the Ministry of Finance today presented a set of indications that aim to grant new sources of permanent financing to the pension reform. Specifically, the...
Chamber of Deputies approved indications to the bill that reduces or eliminates exemptions and incorporated annual wealth tax
On December 21st, 2021, , the Executive presented a bill that reduces or eliminates tax exemptions in order to finance the Universal Guaranteed Pension ("PGU"), proposing in general terms to eliminate exemptions, such as those established for the highest amounts obtained for...