The Chilean Executive Branch has submitted a comprehensive tax reform bill (the Tax Reform Bill) to the Chilean Congress. Tax reform is a key component of Chilean President Gabriel Boric’s agenda. The Tax Reform Bill is expected to represent 4.3% of Chile’s GDP by 2026 (a net 4.1% of the country’s GDP after discounting tax expenditures incorporated by the Tax Reform Bill). Specifically, the Tax Reform Bill proposes to amend certain matters related to income tax, wealth tax, and shareholder taxation. The bill also would incorporate new measures focused on preventing tax avoidance and tax evasion and would reduce the number of tax exemptions.
In addition to the Tax Reform Bill, the Chilean Government has submitted to Congress proposed amendments to the Mining Tax Bill that currently is under discussion in the Chilean Senate. The latter bill seeks to introduce a new tax applicable to large-scale mining companies and would repeal the Mining Tax currently in force.