On May 15, 2024, Congress approved into law the creation of a temporary fund for the reconstruction of Valparaíso following the February wildfires, with a mechanism that includes resources exceeding US$800 million for a period of 3 years.
The vehicle, which will be funded through public contributions and private donations, also includes a scheme to unlock resources by paying a tax ranging from 12% to 30%.
The Fund will be extinguished by operation of law on December 31, 2026, or earlier upon the complete depletion of its resources.
What does it consist of?
- The bill proposes that taxpayers (“companies”) subject to the Semi-Integrated Regime under letter A) of Article 14 of the Income Tax Law, which as of December 31, 2023 hold accumulated profits in the “RAI” registry (including those recorded in the STUT), may opt to pay a substitute tax for final taxes (“ISIF”) at a rate of 12% on part or all of such balance. This ISIF will be applied without entitlement to credits from the SAC. For these purposes, the following rules must be applied:
Learn about the details proposed by the bill in the following document prepared by Agustín Brzovic, Legal Director of Tax Consulting at CCL Auditores Consultores.