Chile Floats New Dividend Tax as Part of Reform Legislation

Chile’s Finance Ministry outlined a proposal Thursday for a new tax on companies’ distribution of dividends.

The proposal is part of the government’s efforts to reform the tax system after its previous plan was rejected by Congress last year in a major blow to President Gabriel Boric.

The ministry offered the plan in a meeting with representatives of leading opposition parties, whose votes will be crucial to approve legislation. It also proposed reforming the current income tax regime to treat corporate and income tax separately. Under the proposal, the maximum effective rate paid by contributors on dividends along with income ...