Fischer y Cía. ha creado este sitio web con el fin de apoyar la comprensión y el debate sobre estos cambios en el sistema tributario chileno. Esta es información general. Por lo tanto, no es necesariamente completo o exacto. También se actualiza y corrige continuamente. Te invitamos a colaborar con esta iniciativa enviando comentarios o documentación a comunicaciones@fycom.cl 

Fischer y Cía. has created this website in order to support understanding and debate on these changes to the Chilean tax system. This is general information. Therefore, it is not necessarily complete or exact. It is also continually updated and corrected.  We invite you to collaborate with this initiative by sending comments or documentation to comunicaciones@fycom.cl

INGLES

DOCUMENTS

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Personal Income Taxes:

  • Marginal rates increase, and monthly income brackets above Ch$4 million are amended. 
  • The maximum marginal rate increases to 43%. 
  • The deduction of interest on mortgage loans is limited to one loan. 
  • Rental expenses can be deducted from taxable income (Ch$465,000 monthly limit), as can expenses associated with the care of children under two years old or with a severe dependency (Ch$580,000 monthly limit). 

 

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Desintegration of the tax system 

  • Corporate Income Tax decreases from 27% to 25%. 
  • A “development tax rate” of 2% is introduced, which can be paid through expenses that increase the company’s productivity, such as investment in innovation and development, acquisition of high technology services, protection of industrial property, or ISO certifications. 

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Wealth Tax and Exit Tax 

  • These are levied every year on individuals with domicile or residence in Chile with a net worth that exceeds USD 4.5 million. 
  • The rate is 1% on a net worth exceeding USD 4.5 million and 1.8% if it exceeds USD 13.5 million. 
  • There is no distinction between the nature or location of these assets. 

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Capital Gains

  • The tax on capital gains from the disposal of specific stock market instruments, such as shares, increases from 10% to 22%. 
  • Individuals who pay IGC at rates lower than 22% may compensate their capital gains using this tax. 

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Tax Avoidance 

  • General antiavoidance rules can be directly applied by the IRS. 
  • Final beneficial owners with an interest of over 10% in the capital, profits or voting rights of an entity must be registered. 
  • The related party rules governing control over foreign passive entities are amended. 
  • Anonymous tax whistleblower is recognized. 
  • IRS Regional Directors are empowered to audit taxpayers of other domiciles and to jointly audit taxpayers within the same business group. 
  • The valuation rules are amended. 

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Mining Royalty 

  • This royalty affects large copper mines, which are mines producing over 50,000 metric tons of fine copper per year (TMCF in Spanish). 
  • It has two components: 
    (1) Sales: royalty of between 1% and 7% for producers between 50,000 and 200,000 TMCF, and between 1% and 4% for producers over 200,000 TMCF. 
    (2) Mining margins: royalty of between 2% and 36% of net operating income, when copper prices are between two and six dollars per pound. 

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Inheritances, Assignations and Donations 

  • Taxable event: Revocable donations are now a taxable event subject to donation tax.
  • Exemptions: The tax exemption is eliminated on donations by individuals for any purpose from fully taxed resources according to the LIR, limited to 20% of their overall income. Such donations are subject to the insinuation process. 

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Real estate (amendments) 

Capital gains on real estate

  • Taxable gain: The computation of the taxable gain is amended and it will be taxed on an accrual basis. 
  • Exemptions: Capital gains of UF 8,000 (approximately USD 0.3 million) will continue to be treated as non-taxable income during the taxpayer’s lifetime. The preferential rate of 10% also continues. However, these benefits are limited to individuals with domicile and residence in Chile. 

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PRESS

Fischer y Cía. do not own the rights to all the press texts and photographs on this website, but they credit each article as appropriate. The contents are retrospective and are not available to the public for any other purpose.

Limitation of Liability These contents do not constitute legal advice. This website is for informational and general purposes only. It is updated and corrected as the Tax Reform bill is fully reported and progresses through various procedures. Fischer y Cía. is not responsible for the content of websites that are linked to or from our website.

Fischer y Cía. no posee los derechos de todos los textos de prensa y fotografías de este sitio web, pero dan crédito a cada artículo según corresponda. Los contenidos son retrospectivos y no están disponibles al público para ningún propósito. 

Limitación de responsabilidad.  Estos contenidos no constituyen asesoramiento legal. Este sitio web tiene fines informativos y generales únicamente. Se actualiza y corrige a medida que se informa en su totalidad el proyecto de Reforma Tributaria y avanza a través de diversos trámites. Fischer y Cía. no es responsable del contenido de los sitios web que están vinculados hacia o desde nuestro sitio web.

Fischer y Cía. do not own the rights to all the press texts and photographs on this website, but they credit each article as appropriate. The contents are retrospective and are not available to the public for any other purpose.

Limitation of liability.  This contents do not constitute legal advise. This website si for informational and general purposes only. It is updated and corrected as the Tax Reform bill is fully reported and progresses through various procedures. Fiche y Cía. is not responsible for the content of websites that are linked to or from our website.