In our second newsletter of the tax reform presented in July 2022, we discussed some aspects of the new wealth tax, the exit tax or “Exit Tax”, the National Registry of Final Beneficiaries and the modifications that would be incorporated into the Single Law of Money.
A. Wealth Tax
I. Taxpayer and rates . It is a tax that affects natural person taxpayers who reside or have domicile in Chile, and is applied annually on their assets as of December 31 of the immediately preceding year , with a rate of 1.8% in the part that is equal to or greater than UTA. 6,000 (approx. $4.2 billion Chilean pesos today); and 2% in what it exceeds UTA 18,000 UTA (approx. $12,600 million Chilean pesos).
II. Tax basis . Corresponds to the taxpayer’s own assets, in the following sense:
- All its Assets are added, such as (i) goods, shares, rights, quotas, securities and benefits of which a person owns directly or indirectly ; (ii) assets of trusts, private interest foundations and other fiduciary structures, or entities of any kind, without legal or fiscal personality; (iii) quota that corresponds to a hereditary community; and (iv) goods acquired by donation. The parents who jointly exercise parental authority over the assets of their non-emancipated children, each one must include 50% of the assets of their non-emancipated children. The only assets that are excluded are: (a) assets acquired by donation or succession due to death, but only in the year in which the relevant inheritance or donation tax is paid; and (b) the balances in the individual capitalization accounts for mandatory contributions for pensions and the individual account for unemployment.
- Liabilities are deducted , considering their unpaid balance as of December 31 of the immediately preceding year, provided that: