Chile’s Kast Signs Law Cutting Company Tax to 23%
Chile's President José Antonio Kast signed a law that cuts the company tax rate to 23% by 2029, a change that matters to US investors in Chilean stocks. The post Chile’s Kast Signs Law Cutting Company Tax to 23% appeared first on The Rio Times .
Chile's President José Antonio Kast has signed a law cutting the company tax for large firms from 27% to 23% by 2029, aimed at reviving investment in the country's top copper producer. Known as the "megarreforma", the measure lowers the tax bill for Chilean companies listed in New York and offers tax rules frozen for up to 20 years on large projects, benefiting both local and foreign investors.
Interior Undersecretary Máximo Pavez announced the signing, calling it a "very good piece of news" to relaunch the economy amid the ongoing Santiago region storm damage. The law, approved by the Senate in July and the Chamber of Deputies in May, will gradually reduce the tax rate in three stages, reaching 23% by 2029. The second measure targets big investors, granting projects worth US$50 million or more tax stability for 10 years, and those above US$350 million for 20 years.
After signing, the decree must be reviewed by the Comptroller General's Office and published in the official gazette before the deadlines for each measure start running. The tax cuts offer potential profit for shareholders and may influence large project decisions in Chile. The law still faces political scrutiny and publication is expected in the coming days.
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