ey-global-tax-policy-outlook-for-2015
ey-global-tax-policy-outlook-for-2015
ey-global-tax-policy-outlook-for-2015
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Chile<br />
Tax <strong>policy</strong><br />
Pablo Greiber<br />
pablo.greiber@cl.<strong>ey</strong>.com<br />
+56 2 2676 1260<br />
1<br />
| Tax rates (2014–15)<br />
1.1 K<strong>ey</strong> <strong>tax</strong> rates<br />
Tax controversy<br />
Carlos Martínez<br />
carlos.martinez.c@cl.<strong>ey</strong>.com<br />
+56 2 2676 1261<br />
Top corporate<br />
income <strong>tax</strong> (CIT) rate<br />
(national and local<br />
average, if applicable)<br />
Top individual income<br />
<strong>tax</strong> rate (national<br />
and local average, if<br />
applicable)<br />
2014 <strong>2015</strong> Percentage<br />
change<br />
21% 22.5% 7.1%<br />
40% 40% —<br />
Standard value-added<br />
<strong>tax</strong> (VAT) rate<br />
19% 19% —<br />
Stay up to date with<br />
developments in Chile<br />
by accessing EY's <strong>global</strong><br />
<strong>tax</strong> alert library at<br />
www.<strong>ey</strong>.com/<strong>tax</strong>alerts.<br />
Content provision date<br />
6 January <strong>2015</strong><br />
EY k<strong>ey</strong> contacts<br />
2<br />
| <strong>2015</strong> <strong>tax</strong> <strong>policy</strong> <strong>outlook</strong><br />
2.1 K<strong>ey</strong> drivers of <strong>tax</strong> <strong>policy</strong> change<br />
• In September 2014, a major <strong>tax</strong> overhaul entered into effect in Chile, albeit<br />
progressively (the most important changes will actually take place in 2017).<br />
• The k<strong>ey</strong> driver <strong>for</strong> this re<strong>for</strong>m is to fund the educational re<strong>for</strong>m already being<br />
discussed in Congress (another major overhaul), alongside many k<strong>ey</strong> <strong>tax</strong> <strong>policy</strong><br />
<br />
corporation (CFC) rules, a whole redesign of the corporate <strong>tax</strong>ation system<br />
(including a substantial rate increase), VAT to real estate sales, and more power to<br />
an already aggressive <strong>tax</strong> authority.<br />
• <br />
already law, <strong>2015</strong> promises to encompass two major discussions: (a) whether<br />
several technical issues that remain unresolved under the new regulation will<br />
be amended, and (b) the feasibility of the re<strong>for</strong>m’s actual implementation (as a<br />
result of those technical issues, that many see as true dead ends from a practical<br />
perspective), and how the <strong>tax</strong> authorities will interpret the greatest changes via<br />
<br />
<br />
when changes do start happening<br />
52 | The <strong>outlook</strong> <strong>for</strong> <strong>global</strong> <strong>tax</strong> <strong>policy</strong> in <strong>2015</strong>
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