Chile’s Senate has approved the Tax Compliance Bill on 24 September 2024, which will be presented to the Lower House for final approval.
The newly approved tax measures include modifications to the general anti-avoidance rule (GAAR), statute of limitations, administrative procedures, and its relationship with special anti-avoidance rules. Amendments are proposed to transfer pricing rules including the arm’s length principle based on OECD guidelines. The rules for recognising passive income from controlled foreign companies (CFCs) will also be revised.
Other key modifications include increasing the maximum value of non-commercial imported goods eligible for duty and VAT exemption from USD 41 to USD 500, establishing operators of digital intermediation platforms as regular VAT taxpayers, and introducing new options for repatriating assets and goods from abroad at a rate of 12%.
The bill requires review by the Constitutional Court and presidential approval to become law.
