We invite you to read the opinion column by our partner Rodrigo Albagli, in which he discusses the changes and opportunities regarding donations brought about by the “Megareform.”
The “Megareform,” passed by Congress a few days ago, marks the culmination of a lengthy and complex legislative process and is on the verge of becoming law. All that remains is a potential presidential veto on four issues and a ruling by the Constitutional Court. Among its provisions is one that has received less public attention but will nevertheless open a concrete window of opportunity for many families: changes regarding gifts.
The new regulation stipulates that donations subject to the tax provided for in Law No. 16,271, on Inheritance, Bequests, and Gift Tax, will be eligible for a one-time reduction of 50% of the assessed tax, along with the ability to utilize 100% of the tax credit toward a future inheritance. This is a time-limited benefit: a 12-month window.
Gifts have historically been a recurring topic of consultation among individuals with a certain level of wealth, as an alternative for transferring it in an orderly manner. With the new law, such consultations are expected to increase. For those who were already considering this type of transaction, the incentive is significant and the timeframe is limited.
But the value of this reduction goes beyond tax savings. Above all, it is an opportunity to review family structures and estate transfer mechanisms: which assets are held in which vehicles, how ownership is distributed across generations, and what governance rules exist to manage it. These are discussions that are often put off for years, but a firm deadline forces them to be brought to the table.
In that sense, the measures that will soon become law seem sound to me. When tax incentives are well-designed and have a defined timeframe, they can be an effective tool for unlocking economic decisions and accelerating their implementation, reducing both cost and time barriers.
The success of these changes, however, will depend largely on their implementation. On the one hand, this depends on how the transitional provisions are applied, especially to safeguard deadlines and rights already acquired. On the other hand, it depends on the timely issuance of instructions by the Internal Revenue Service: within a 12-month window, every month without clear guidelines is time that taxpayers cannot recover.
The application of the new tax rules on donations must be technical and free of bias.
Ultimately, the fundamental challenge is for Chile to maintain competitive conditions for those seeking to structure long-term wealth investments.
Opinion column written by:
Rodrigo Albagli | Partner | ralbagli@az.cl
