The Government has published a bill to adjust the proposals in the original tax reform legislation. The amendments to the tax reform bill are given below:
- A new corporate income tax system would build under which taxpayers could be able to choose between a system of attributed profits or use a partially integrated system
- For taxpayers electing the attributed profit system, corporate income tax increases from 20% to 25% until 2017 and for taxpayers electing the partially integrated system it changes from 20% to 27% up to 2018.
- Based on a 3:1 debt: equity ratio, thin capitalization rules apply.
- Interest expense deductions on acquisitions of shares and other securities would limit.
- Adjust the treatment of goodwill due to amortization purposes.
- Information would require for investments reporting in Chile and abroad by corporate taxpayers.
- Individual’s sales treatment or transfers of real estate would revise.
- Give an alternative for historical FUT and excess withdrawals.
- A cash repatriation regime has made available for one year (2015).
- Under the CFC rules, the tax credit system would revise for taxes paid to a foreign country.
- General anti-avoidance rules would provide.
