Today the Senate Finance Committee is debating the Executive's amendments to the tax reform. The Government has moved the three core measures —the Corporate Income Tax (CIT) drops to 22%, tax invariability shifts to 10-, 15- and 20-year brackets with an access premium, and the employment credit changes its very nature— and added several under-the-radar adjustments to gift tax, capital repatriation and the DFL-2 regime. We go through them one by one.

Tonight President Kast will unveil the "Reconstruction Plan," or Miscellaneous Act, which would include close to 40 economic-recovery measures with significant tax changes. Among the highlights: a gradual reduction of the Corporate Income Tax (CIT) to 23%, a return to a fully integrated system, a temporary 0% VAT on new homes, a cut to the gift tax, capital repatriation (8% for 9 months), and tax invariability for up to 25 years for investments of US$50 million or more.