Chile’s president on 21 August 2018 announced a forthcoming tax reform bill would be presented to the Congress. The bill would be intended to introduce changes to modernize and simplify the Chilean tax system in an effort to promote investment, growth, and employment.
The announcement only provides certain high-level details of the tax reform provisions and include:
More details will be available once the text of the bill is presented to Congress.
The tax reform would be expected to have implications for foreign non-treaty jurisdiction investors, in that it could reduce the current effective tax rate that can be as high as 44.45% to 35%.
Specifically, U.S. investors in Chile could be affected by the tax reform measures, given that the Chile-United States income tax treaty has yet to enter into force.
Implications of the proposed tax reform for multinationals and other non-resident investors in Chile include the following:
Read an August 2018 report (Spanish) [PDF 370 KB] prepared by the KPMG member firm in Chile
For more information, contact a tax professional with KPMG’s Latin America Markets Tax practice or with the KPMG member firm in Chile:
Alfonso A-Pallete | +1 (305) 913-2789 | firstname.lastname@example.org
Francisco Lyon | +56229971400 | email@example.com
Rodrigo Stein | +56229971341 | firstname.lastname@example.org
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.