Chile MOF Announces Lower House Approval of VAT Reform Proposals

The Chilean Ministry of Finance Jan. 15 announced that the Chamber of Deputies approved VAT reform proposals to encourage the formalization of micro-enterprises, and to add anti-avoidance measures. The proposals includes measures to: 1) defer VAT payments for taxpayers initiating activities and registering sales of up to 2,400 account units (UF) in their first two years, by allowing a 100 percent credit for VAT paid during the first six months, a 50 percent credit for VAT paid during the following six months, and a 25 percent credit for VAT paid during the remaining 12 months; 2) modify the VAT refund ...