az Alert | Tax Reform – Capital Gains Tax and Development Fee

In the context of the initiatives that are intended to be implemented with the Tax Reform proposal towards a new fiscal pact, we can find a general taxation regime for large companies, replacing the current semi-integrated system.

The above, separating the IDPC associated to the company from the taxation of its partners and incorporating a new Capital Income Tax (IRC) equivalent to 22%, which would apply on dividends and/or withdrawals made by final taxpayers, without the right to credit.

In such case, the taxpayer will be able to incorporate the withdrawal to its final taxable income, using the IRC as a credit. This would not apply to SMEs.

Additionally, capital gains associated with stock market instruments will also be subject to IRC, increasing the rate from 10% to 22%.

On the other hand, the IDPC of companies under the General Regime is reduced to 25%. However, a new Development Rate is established, equivalent to 2% on the determination of the Net Taxable Income (RLI). This, without prejudice to the different possibilities offered by the proposal, for not paying such tax.

For more information please contact our azTAX group:

David Ancelovici : Tax Group Director : dancelo vici@az.cl

Valentina Galdames | Associate | vgaldames@az.cl

Guillermo Ulloa | Associate | gulloa@az.cl