Category Taxation in Chile

Chile to Go After Online Multinationals

June 25, 2018 Taxation in Chile

Amazon tax in ChileSANTIAGO – Chile is looking to join the growing ranks of companies vying to tax online multinationals such as Uber, Netflix, and Amazon.

Late last week the Finance Minister Felipe Larrain of Chile announced that the government wants to implement new taxes on multinational digital businesses operating in Chile, in an effort to level the playing field between new digital businesses and their traditional counterparts.

Previously, the tax authorities of Chile had no mandate upon which to charge taxes to online businesses such as Spotify, Netflix, and Amazon.

The lack of taxes was due to the fact that the online businesses had no presence in the country, and therefore couldn’t be taxed.

However, no taxation methodology or rate has yet been finalized.

The Minister did state that the governm...

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Chile Approves Extensive Tax Reform

September 11, 2014 Taxation in Chile

CHILE – The government of Chile will use an array of new tax hikes to fund universal free education in the country.

On June 11th the Congress of Chile voted on and approved a new tax reform bill, which will raise taxes and provide funding for new projects aimed at reducing inequality in the country.

Under the conditions stipulated in the reform bill, the government will drop the current Taxable Profits Fund, which allows companies to obtain tax credits for reinvesting their profits.

Corporate tax system will also be overhauled, with companies now given the option of either paying 27 percent corporate income tax, with the ability to claim limited tax deductions for reinvesting some profits into pre-approved activities, or the alternative choice of paying a headline rate of 25 percent on cor...

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Chile Approves Tax Reform

May 16, 2014 Taxation in Chile

tax reform in chileSANTIAGO – Chile is stepping closer to implementing an extensive tax reform to help raise funds needed to improve the national education system.

In a vote held on May 14th the lower house of Congress has given its approval to a proposal to extensively overhaul the national tax system, ultimately aimed at raising more tax revenues to fund new social programs and welfare measures.

The reform of the tax system is aimed at helping the government raise tax revenues by approximately USD 8.2 billion, with a significant portion of the new funds already earmarked to fund a complete overhaul of the national education system.

As part of the overhaul, the lower house approved an increase to the rate of corporate income tax rate from 20 percent to 25 percent by the end of 2017, along with the closing ...

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Chile Pursues Tax Reforms

April 1, 2014 Taxation in Chile

Chile Pursues Tax ReformsSANTIAGO – Chile may soon lower the tax obligations faced by individuals, while raising taxes for businesses and politicians, in order to help improve equality and fund social development.

On March 31st the President of Chile Michelle Bachelet revealed a comprehensive tax reform package aimed at significantly raising tax revenues in order to fund new investments “…that will lead to a better Chile for all.”

The proposed tax reform package is expected to raise national tax collections by approximately USD 8.2 billion per year, with a significant portion already earmarked for healthcare and education investments.

The proposed tax changes will also improve income distribution, eliminate the occurrence of tax evasion, provide greater incentives for investment into business, and will help furt...

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Chile to Propose Tax Reform

April 20, 2012 Taxation in Chile

Chile President announces tax reformSANTIAGO – Chile will soon present a proposals for tax reform in order to boost national prosperity and fund further investment into the national education system.

Earlier this week the president of Chile Sebastián Piñera announced that the government will soon put forward a proposal to reform the tax system with the aim to “to provide permanent, responsible financing for the broad educational reform we are implementing and to which we are completely committed”, which, amongst other changes, will overhaul regulations for personal and business taxation, and could lower fuel taxes. The proposal is still not finalized, and is expected to be presented to Parliament by the end of April.

Tax experts in Chile are saying that the government has indicated that it intends to lower the number ...

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