The approval of the Chilean parliament of the fiscal reform introduced by the Bachelet government paves the way for increased social spending (especially on healthcare and schools) and for economy-stimulating interventions. In 2015 the Bachelet government will have an additional 2.3 billion USD annually at its disposal. With this reform, the current 20% tax rate for businesses will rise gradually over the next three years to between 25 and 27%. By 2017 the possibility to deduct profits earmarked for the Fondo de Utilidades Tributables will be abolished. The Revenue Agency will receive more funding and greater powers. Businesses will be able to opt for one of two fiscal treatments: the first based on application of a standard proportional tax, and the second on itemisation.
(infoMercatiEsteri)
