The Ministry of Finance declared on 6th May 2016 that the government had approved a bill to increase productivity. Tax measures contain:
- Expand the definition of export services to incorporate further services for VAT exemption upon exportation;
- Permitting all service exporters to credit any direct taxes paid abroad so as to avoid double taxation;
- Removing the withholding tax increase from software and engineering services paid to related companies abroad under transfer pricing rules; and
- Extending the additional tax exemption to amounts paid abroad for work, engineering and technical services, given that they are used for export of goods or services from Chile.
