On Monday, February 4, Congress will begin its annual legislative recess until March 4. Upon resuming its activities, the Deputies´s Finance Committee is expected to pass the tax modernization bill (Exp. 12043). This proposes modifying the Chilean tax system and would incorporate new taxes on digital services.
Although originally meant to be passed in January, this did not happen because of disagreements between the ruling party and opposition. However, the government has pledged that come February it will negotiate with different opposition blocs to secure the bill’s passing in the first weeks of March.
This week the Ministry of Finance met with the National Confederation of Micro, Small and Medium Enterprises of Chile (Conapyme). The ministry is seeking new sources of support for the bill, which it believes would help it getting passed in March. The Confederation gave its backing for the bill, while at the same time announcing the inclusion of the Digital Services Tax (ISD).