Tax increase will fund universal pension in Chile

Finally, and after long hours of negotiation, the Chilean Ministry of Finance has proposed a set of six tax amendments to fund the creation of a Universal Guaranteed Pension (PGU), which represents 0.9% of Gross Domestic Product (GDP) in regime sal kos.

As explained by the Minister of Finance, Rodrigo Cerda, before the Senate Branch Commission, the adjustments seek to raise the equivalent of 0.67 points of the product and consider changes to the tax on mining patents, the surcharge on high-value property, a new taxes on high-value vehicles and conditions of benefits for, among other things, withdrawals from freely available surpluses.

On the side of mining patents, changes in taxation and duration of the two existing types were put on the table: exploration and mining. Thus, on the one hand, it aims to increase the term of the exploration patent from two to four years, but eliminate the possibility of renewal for two years that the legislation envisages today. In turn, the amount of the patent would be increased from 1/50 UTM per hectare to 3/50 UTM per hectare.

With regard to the values ​​of the exploitation patents, a progressive scale is created according to the course of the years for concessions that do not show work, from 4/10 UTM per hectare for the first five years, to 12 UTM per hectare for patents since the year 31.

If the progressive patent system is implemented, it could increase the collection from $ 60 million to $ 430 million, of which $ 300 million will go to the central government and the other part will benefit the National Regional Development Fund (FNDR). and to the municipalities.

The Treasury proposes to increase the rate for properties with a fiscal value of more than $ 900 million (one million dollars), from the current rate of 0.275% to 0.425 percent. The said adjustment will affect 18,000 taxpayers and will take effect on January 1, 2023. This amendment will enable the collection of $ 126 million. In the case of luxury products, it is proposed to include an annual tax of 2% on the tax assessment, which is paid in addition to the payment of circulation permits or equivalent.