On september 4, Senators of the Finance Committee began reviewing an Executive bill to modernize tax legislation (Exp. N° 12043). In the day’s session, the Minister of Finance, Felipe Larraín, gave a presentation on the main aspects of the proposed reform, including the levying of VAT on foreign digital services platforms. The bill was sent to the Senate by the Chamber of Deputies last August 22, after being partially approved. It is expected that the committee will continue debating the bill in future sessions.

The members of the committee agreed to hold public hearings and to discuss the Executive’s proposal carefully and with all the relevant background information and projections.

In the meeting Larraín stressed that this initiative would make it more attractive for Chileans to invest in the country and that it would strengthen the general anti-tax evasion provisions currently in force. He also explained to the committee the compensatory measures proposed under the bill and their respective benefits. These include the incorporation of limitations for back to back and market maker contracts.