Chile Lower House Considers Bill to Amend Various Tax Measures for Middle-Class Individuals, SMEs

The Chilean Chamber of Deputies July 22 accepted for consideration Bill No. 17707-05, to amend various tax measures for middle-class individuals and small and medium-sized enterprises (SMEs). The bill includes measures to: 1) establish a reduced first category tax rate of 20 percent for SMEs under the integrated alternative regime; 2) amend the marginal individual income tax rates for the two highest income brackets, applying a 38 percent rate for income exceeding 120 monthly tax units, and a 40 percent rate for income exceeding 150 monthly tax units; and 3) provide a two-year VAT reduction to new businesses equal to ...