A new tax bill submitted to the Chilean Congress includes several proposed changes to the Chilean Tax System. The provisions of the bill are intended to broaden the tax base and to increase tax revenue collection. Changes, if enacted, include:
- An increase in the corporate tax rate from 20% to 25% over a period of time
- New GAAR rules including the authority to recharacterize any transaction that is deemed to be abusive, artificial or inconsistent with its substance
- New CFC rules for passive inco…