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25 October 2024

Chile enacts comprehensive tax compliance bill

  • The tax compliance bill has been promulgated and published in Chile.
  • Changes included in the law will generally come into force on 1 November 2024 (although effective dates may vary depending on the specific measure).
 

Executive summary

Law No. 21,713, published in the Chilean Official Gazette on 25 October 2024, enacts a comprehensive tax compliance bill. Relevant measures in this tax package include changes in the following matters:

  • General Anti Avoidance Rules (GAAR) and tax evasion
  • International taxation
    • Reformulation of tax-free reorganization rules, including international reorganizations
    • Improvements in transfer pricing regulations, particularly focused on advance pricing arrangements (APAs)
    • Exclusion rules for indirect transfer rules limited to tax-haven regimens
    • Requirements to qualify as tax-haven regimens reformulated
    • Relationship rules for controlled foreign corporations (CFCs)
  • Value-added tax (VAT)
    • Enhancement of VAT regime for digital economy, including digital platforms and marketplace for imported goods remotely acquired
    • New specific anti-avoidance rule (SAAR) to requalify reorganization to circumvent application of VAT
    • VAT for low-value goods exemption abrogated
    • Export VAT refunds restrictions
  • Tax Compliance and other related aspects
    • Corporate governance of the Chilean tax authorities
    • General audit powers
    • Tax sustainability
    • Anonymous whistleblower
    • Bank secrecy
    • Penalty interest rate aligned with market conditions
    • Tax Ombudsman powers expanded
  • Transitional measures
    • 12% voluntary disclosure and repatriation tax
    • Early termination of tax trials

New law

On 25 September 2024, the Chamber of Deputies passed the draft comprehensive tax compliance bill, which then underwent a constitutional review and moved through the legislative process. That draft bill has now become law. Changes included in the law will generally come into force on 1 November 2024 (although effective dates may vary depending on the specific measure).

For details on the various provisions, see EY Global Tax Alert, Chilean Congress approves comprehensive tax compliance bill, dated 14 October 2024.

* * * * * * * * * *
Contact Information

For additional information concerning this Alert, please contact:

EY Chile, Santiago

Ernst & Young LLP (United States), Latin American Business Center, New York

Ernst & Young LLP (United Kingdom), Latin American Business Center, London

Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor

Document ID: 2024-1968

 
 

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