This Wednesday, September 25, the Chamber of Deputies approved the bill in its third legislative stage, thus avoiding a joint committee. However, considering that the bill contains provisions of constitutional organic law, it was sent to the Constitutional Court, after which it must be enacted and published by the President of the Republic.
After six months of discussion in Congress, the Tax Compliance bill was passed into law, an initiative included in the Pact for Economic Growth, Social Progress, and Fiscal Responsibility.
This Wednesday, September 25, the Chamber of Deputies approved the bill in its third legislative stage, thus avoiding a joint committee. However, considering that the bill contains provisions of constitutional organic law, it was sent to the Constitutional Court, after which it must be enacted and published by the President of the Republic.
With this bill, the Executive expects to raise 1.5% of GDP, around US$4.5 billion. Of this amount, US$1.2 billion could be incorporated into the 2025 Budget, mainly allocated to public security and pensions.
What does it consist of?
It aims to raise 1.5% of GDP by reducing gaps in tax payments due to avoidance, evasion, and/or unintentional underreporting, as well as informality, while strengthening the modernization of tax administrations.
According to the Ministry of Finance: “improving compliance with tax obligations would allow financing more than half of the spending commitments of the Fiscal Pact with resources from taxpayers who are abusing the system or who are unintentionally failing to meet their obligations.”
According to Marcel, the resources in the 2025 budget will help “finance budget increases in matters of public order and citizen security.”
Learn about the changes proposed by the bill in the following document prepared by Francisco Orellana, Partner of the Legal and Tax/Customs Defense Area at CCL Auditores Consultores.