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 | email@example.com
Francisco Lyon | +56229971400 | firstname.lastname@example.org
Rodrigo Stein | +56229971341 | email@example.com
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