On 29 January 2020, the Senate approved a Tax Reform Bill. Once in force, the proposed measures will generally apply as from 1 January 2020, except the VAT requirements for digital services, which will be implemented three months after the law is published. The tax changes in the reform bill include:
- a new definition of permanent establishments
- a new concept for tax deductible expenses;
- A 25% reduced corporate tax rate for small and medium enterprises
- the introduction of green taxes; and
- a 19% VAT rate to be applied to digital services rendered in Chile by non-residents.
