delivery DL 600 Commission report invariable tax changes and institutional
The document confirms the expert group need for a Foreign Investment Statute, but opt \u200b\u200bfor an upgrade.
modernizing Commission DL 600 delivered yesterday Economy Minister Juan Andrés Fontaine, the report prepared by the instance that in the context of the discussion of Law 20,469 that "introduced changes to the Taxation of Mining Activities."
In essence, the experts concluded that it is necessary to have a Foreign Investment Statute, although they acknowledge they must make a series of amendments. These are:
1 - Consider an amendment to the stability of the total effective tax burden
. Today when the rate of 42%, much higher than that applicable to common tax regime of 35%, most foreign investors choose to waive this invariance to repatriate their capital when paying in this way the rate of 35%. Given this, it is advisable to review this type of invariance to make it more effective achieving a real incentive for foreign investors and lower the rate should remain unchanged from 42% so it is less remote from the current rate (35%).
2 - Delete the provision that limits access to domestic credit by foreign investors.
It is hard to justify the existence of this type of restriction and discrimination between domestic and foreign investors, which has negative consequences such as limiting the development of the Chilean capital market because it creates a barrier between this market and foreign companies in the country.
3 - Repeal of Article 11 bis.
The Commission has seen fit to propose the repeal of this provision, because its application is restricted to only certain sectors of production and also makes arguments for the granting of invariance by contract laws, regulations and administrative understand this form of invariance.
4 - Maintain the current text, invariably referred to in Article 11 ter.
regard to the recent enactment of Law No. 20,469 that "introduced changes to the taxation of Activity Mining, which changed the rules of foreign investment in the industry, it is advisable to explore a modification of this provision.
5 - Changes to Foreign Investment Committee and a vice.
Analyze the mission and responsibilities, regarding functions, duties and personnel structure.
minority vote
The document has a minority vote of the members of the Coalition, who previously submitted the report to senators voting pact.
In this pose the government to request a report to the OECD to advise on best practices of foreign investment, and the DL 600 "is not an instrument that is now a contribution."
SEE, THINK, WRITE . Greetings
Rodrigo González Fernández
Diploma in Corporate Social Responsibility "UN
Diploma in Knowledge Management" UN
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