Beyond the 22% and the invariability: the Executive's changes that go under the radar

Today, the Senate Finance Committee is discussing the amendments the Government submitted last night to the National Reconstruction Bill. This is the stage where the reform takes its final form: the Bill has passed the general discussion at the Senate, and now the details are being considered. The Executive Branch has outlined its position with a package of amendments that should be read carefully, because some key measures differ from what was approved, while others, less discussed, could have a more direct impact on businesses and families.

The key point: corporate tax at 22%

Regarding the Corporate Tax, the Executive Branch is deepening and accelerating the reduction: the projected rate is 27% for 2026, 25% for 2027, 23% for 2028, and a permanent rate of 22% from 2029 onward, with provisional payments adjusted to 0.22%. This is one percentage point below the 23% that had been approved and comes ahead of schedule, as the rate would already be at 23% in 2028. For businesses, the message is clear: a corporate tax burden that is steadily decreasing and has a lower floor than previously discussed.

Tax stability is where the most changes occur.

The text approved in general offered a flat regime: 25 years of stability for investment projects equal to or greater than 50 million dollars. The Executive's amendment replaces this with a tiered system based on the size of the investment: 10 years for investments between 50 and 100 million dollars, 15 years between 100 and 350 million, and 20 years for investments over 350 million. It also introduces an access cost that did not previously exist: Corporate Tax is increased by 1.5%. And it adds a limit on indebtedness to related parties (which cannot exceed three times the company's taxable equity), the violation of which results in the loss of stability. In practice, the maximum horizon is reduced from 25 to 20 years, medium-sized projects are left with considerably shorter terms, and stability is no longer "free."

The third central axis is employment credit.

The bill, as approved in general, creates a general hiring tax credit equivalent to 14 percent of wages, with adjustments based on the worker's sex and age. The Executive's amendment completely replaces this with a different incentive: a tax credit for the export of knowledge-based services in the digital economy, amounting to 15 percent of the portion of wages related to those exports, with an additional 5 percentage points for companies located outside Santiago and a cap of 75 UTM per worker. Simultaneously, the Government is strengthening direct employment support by modifying the Unified Employment Subsidy established by Law 21,808. In other words, the cross-cutting hiring incentive is eliminated and replaced by one limited to a specific sector, supplemented by a direct subsidy.

So far, so good. However, the package includes several guidelines that have received little attention but are equally important to some taxpayers.

Changes to the cut on gift tax

The 50% reduction in the gift tax remains, as does the one-year grace period and the elimination of the formal judicial process. What changes is how the tax is financed. The original bill allowed it to be paid with loans granted by the companies whose shares are being donated, or by related companies, without triggering Article 21 of the Income Tax Law (deemed dividend taxation). The Executive's amendment adds conditions: these loans must be denominated in Unidades de Fomento (inflation-adjusted) and have a maximum term of ten years, and if the company incurs debt to provide the loans, that interest will not be deductible. Furthermore, if the recipient resells the asset within three years, its tax basis will be the lower of the donor's tax basis and the tax basis that would have been applicable under general rules, and the Internal Revenue Service will have three years to conduct audits. For those planning an estate based on a corporate structure, this significantly alters the financial implications.

Modifications to the repatriation regime

The rates remain the same (10% or 7% if the assets are deposited and remain in Chile), as does the 12-month window. What the government has rewritten is the compliance layer, which is now much more strict: an irrevocable authorization to lift banking, financial, and corporate secrecy; permanent access for the Financial Analysis Unit; an anti-money laundering coordination commission; and the entry of assets permitted only from countries with FATF standards and financial intelligence units belonging to the Egmont Group. In addition, a new rule has been introduced: to maintain the reduced rate, the investment held in Chile must represent at least 8% of the total declared. The opportunity still exists, but the standard for traceability and origin of funds has been significantly raised.

Regarding the DFL-2 regime

The 5% flat tax on rental income from economic housing (from the third unit up to ninety square meters) remains structurally unchanged, but the amendment adds a requirement: the rental must be to unrelated individuals. This eliminates the possibility of using the benefit within the same family or business group.

It's important to keep in mind that none of this is law yet: these are recommendations that the Finance Committee is voting on today and that will then go to the Senate for detailed discussion. We're following the details, article by article, on our reform microsite: https://www.norambuena.tax/reforma2026