Tax Law Amendments in Chile: Key Changes to VAT, Export Tax, Inheritance Tax, and More
Value-Added Tax (VAT) Amendments
The Chilean government has introduced several amendments to the Value-Added Tax (VAT) law, aimed at simplifying and clarifying the tax regulations. Some of the key changes include:
- Minimum Refund Requirement: A minimum refund requirement has been introduced for VAT.
- Repayment Obligation: Taxpayers are now obligated to repay at least one-tenth of VAT refunded annually.
- Extended Deadline: The deadline for repayment has been extended to 15 years from the year following the request.
Export VAT Reformulation
The percentage used to determine the amount of refund for Export VAT has been reformulated, providing greater clarity and consistency in tax regulations.
Inheritance, Allocations and Donations Tax Law Amendments
Changes have been made to the Inheritance, Allocations and Donations Tax Law, including:
- Tax on Revocable Donations: Revocable donations are now subject to tax, including those with a domicile or residence in Chile.
- Refund for Revoked Donations: The possibility of requesting a refund for revoked donations within 3 years has been established.
- Benefits for Certain Donations: Benefits have been established for certain donations.
Customs Ordinance Amendments
The Customs Ordinance has been amended to introduce the safeguard resource (recursode resguardo) for administrative level protections. Additionally:
- Email Notification: Email notification is now the default notification mechanism.
- Extended Statute of Limitations: The statute of limitations for filing charges related to customs clearances has been extended.
Taxpayer Ombudsman’s Office (DEDECON) Enhanced Powers
The DEDECON has been granted increased powers, including an expanded scope and role. Improved regulation is now in place to enhance the effectiveness of the mediation process.
Luxury Tax Modifications
Modifications have been incorporated into the Luxury Tax law to provide greater certainty in application rules.