The Chilean President has sent a tax reform bill to Congress. This bill is intended to raise the government’s tax revenue by around USD8.2bn annually by tax increases including an increase in the corporate tax rate to 25 percent by the year 2017. The measures include the scrapping of a provision that permits companies to defer income tax payments indefinitely by reinvesting their earnings. The highest marginal tax rate for individuals is to be reduced to 35 percent, and duties on alcohol will be raised. The reform is expected to be passed by August 2014.
