A new framework law on foreign investment has been passed in Chile. The goal is to modernise the country’s legislation in this sphere, today regulated by a decree law of 1974. The new law, which will come into force in January 2016, aims to increase the flow of inward investment. This will in turn give rise to a more dynamic and “virtuous” system with the scope to guide foreign investment towards sectors deemed to be of fundamental importance to the country’s development.
From a fiscal perspective the new legislation envisages a transitional system until 2020 which will enable foreign investors to sign fixed tax rate agreements with the state. At the end of this period the state will no longer enter into such contracts, as envisaged by the tax reform approved in September 2014 and as recommended by the OECD.
All foreign investors will be guaranteed access to the foreign exchange market, the free remittance of capital and protection from arbitrary discrimination.
UN: Global Compact celebrates 15 years
The celebrations for the 15th birthday of the Global Compact took place in New York from 23 to 25 June 2015. The Global Compact is an initiative created in 1999 by the then Secretary General of the UN, Kofi Annan, to involve multi-national businesses, on a voluntary level, in the effort to achieve sustainable development. Since then, over 8000 companies have signed up, in 170 countries. The new executive director is Lise Kingo, of Denmark, who will take up her position on 1 September 2015. In addition to the session in the General Assembly, the initiative’s most significant session was the one dedicated to “Business for Peace" (B4P), a platform launched by Ban Ki-moon to encourage businesses and local networks to play an active role in support of peace in areas of crisis and risk. To date, 130 companies have signed up to B4P.