On July 1, 2022, Chile’s government introduced a tax reform which seeks to establish a wealth tax on the top 3 percent of the country’s highest earners, which is now waiting for approval from the National Congress.

This proposal has been presented following OECD’s latest report on Chile’s tax policies, which highlighted the importance for the Country to reach a higher tax-to-GDP ratio to rebalance its tax structure and achieve greater prosperity.

The funds generated will in fact be employed to support future social reforms.

Subjects targeted by the new regime will fundamentally be HNW Chilean residents estimated in a number of 6,300 individuals, which will be affected by

an increase of personal income tax rates for incomes over USD5 million in assets held worldwide;
a marginal tax rate of 1% for assets between USD5 million and USD15 million;
a marginal tax rate of 1.8% for assets in excess of USD15 million.

The aim of the proposal is also to reduce tax evasion. For this reason, the country will implement a register of beneficial owners on which companies will have to report individuals with more than 10% of share in the company structure.

SOURCE: https://www.hacienda.cl

ITA