Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

October 25, 2024
2024-1968

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
 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2024, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more