Chilean Government Plans Tax Reforms for Small and Medium Enterprises

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Chile plans to introduce a new tax regime ultimately benefiting Small and Medium Enterprises (SMEs)

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Chilean Government Plans Tax Reforms for Small and Medium Enterprises

  1. 1. Chilean Government Plans Tax Reforms for Small and Medium Enterprises (SMEs) (Bristol, UK) - Chile plans to introduce a new tax regime ultimately benefiting Small and Medium Enterprises (SMEs). This aligns with the new president’s election campaign programme which proposed a structural tax reform and measures for revenue generation for the country, reports Nair & Co.’s International Tax Team. The significant proposed tax reform provisions relating to SMEs include:  SMEs that fall under article 14 ter of the Income tax law may benefit from:  A deduction on annual investments (instant depreciation).  A simple system of accounting.  Filing tax returns – annually .  The eligibility qualification criterion for businesses has expanded from annual sales of 5,000 monthly tax units (UTM) to no more than 14,500 UTM. The existing regime applies to VAT taxable units.  To help curtail SMEs’ cash flow problems, the buyer of forward purchases made by larger companies to SMEs will be responsible for a portion of the VAT payment. Currently, the SMEs are responsible for corresponding VAT payments due in the following month of the purchase. However, the SMEs often do not receive payments from the buyers within 90-days. SMEs operating in Chile may consider monitoring progress of the above proposals. These provisions are expected to benefit SMEs from various tax angles which include easier administrative requirements and reduced tax bills. For more information about doing business overseas or to learn more about our International Expansion Services team please contact us.
  2. 2. Subscribe to regular global tax compliance alerts from Nair & Co. Get the latest news releases and updates on international tax, HR, Finance, compliance and other legal news at Nair & Co. Industry Alerts. About Nair & Co. Nair & Co., the leader in international business expansion services, provides accounting, HR, legal, tax and compliance services for the set up and management of your international operations. Our model of a single-point-of-contact, supported by internal teams of experienced advisors, helps clients expand business and manage risk so they can focus on their core business and sustain growth with minimal risk, stress and cost. We support nearly 250 clients in over 70 countries. Nair & Co. is headquartered in Bristol, UK, has 450 employees and offices in China, India, Japan, Singapore, and the US. Learn more at www.nair-co.com Media Contacts: For media enquiries or to learn to more about Nair & Co., please email us at media@nair-co.com or call Yvonne Smith at +1.408.501.8867

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