This extraordinary measure would raise over US$600 million with a 12% tax rate. Experts are divided on the proposal.
The idea of moving forward with a proposal for the repatriation of capital from abroad had already been outlined by the Government at the end of October 2023 in one of the draft versions of the fiscal pact plan, which at that time was being discussed with representatives of political parties. The proposal has now materialized in the tax compliance bill, which will be submitted to Congress for processing next week.
The measure would apply a 12% tax to taxpayers domiciled, resident, established, or incorporated in Chile prior to January 1, 2024, on their assets and income held abroad that, despite being subject to taxation in Chile, were not timely declared and/or taxed accordingly. To benefit from this, taxpayers must submit a declaration to the SII and comply with certain formal requirements.
Market perspective
A critical view is expressed by Javier Jaque, Leading Partner at CCL Auditores Consultores: “This is a major inconsistency in the tax compliance bill. If it aims to penalize issues of evasion and avoidance, how can it simultaneously offer benefits to those who have avoided or evaded taxes?”