Last month, the government submitted a tax reform bill to Congress. tax reform bill which proposes important changes to the structure of taxation in Chile. To understand the changes proposed in the reform and their implications on taxpayers' income and wealth, FYNSA organized a series of breakfast meetings with its clients, FYNSA organized a series of breakfasts with its clients, in which different specialists from various law firms participated.

As will be recalled, the proposed tax reform contains, among others, the following modifications:

• • Restructures the Semi-integrated Income Tax System
  • Taxes the distribution of profits or dividends from a company to an individual with a capital income tax. from a company to an individual with a capital gains tax.
  • Establishes a Wealth Tax
  • Strengthens the General Anti-Circumvention Rule
  • Maintains the progressive progressive structure of the Global Complementary Tax and Single Second Category Tax, but with increasing rates as income over CLP $4 MM increases, creating new brackets and rates for both the Global Complementary Tax and Single Second Category Tax.The progressive structure is maintained, but with increasing rates as income over CLP $4 MM increases, creating new brackets and rates for both the Global Complementary Tax and the Single Second Category Tax.
  • Eliminates exemptions for DFL2 property leases

Participating in the breakfasts were. María Paz de Carcer and Javier Cerón, of Carola-Diez y Pérez- Cotapos; Ricardo Warnier, of Warnier & De La Cerda; Juan Andrés Larrondo, of Honorato|Delaveau, and Sebastián Martínez-Conde and Eduardo Torreti, of Torreti & Cía.