On December 18, the Senate Finance Committee announced that the senators would review the Executive’s amendments to the tax modernization bill made following talks between committee members and the Ministry of Finance last November 8 when they agreed to press ahead with the reform bill. Senators will address the amendments in upcoming sessions.

The Minister of Finance, Ignacio Briones, participated in the committee meeting and gave a presentation on the modifications introduced to the bill. According to Briones, the main objectives behind the amendments are to empower SMEs, benefit older people and progressively increase state revenue. In this regard, Senators noted that these changes are in line with the agreements made with the Executive.

The modifications to the bill include establishing a semi-integrated single taxation system for large companies, and restricting the use of market maker contracts to access capital gains exemptions through the sale of shares.

Meanwhile, the transitory depreciation regime will be extended until December 31, 2021, to allow for an instant 50% reduction of investment in fixed assets and an accelerated reduction of the remaining 50%.

The measures excluded from the bill include extending VAT credit to the construction sector, adjustments to preferential tax regimes, and the list of clarifications of the General Anti-Avoidance Rule (GAAR).