A new announcement by President Sebastian Piñera on the reforms they want to promote to generate a positive effect on Chile’s economy and project sustained growth during his term
The tax and pension reforms in Chile are those that have a big impact on the shares, which have benefited from a more simplified and more favorable corporate tax structure of the pension fund administrators.
It is possible that for the first or second quarter of next year the tax reform will get its approval. It is proposed that this reform brings with it a greater fiscal benefit for shareholders and also try to boost the market and competitiveness between SMEs. It is also important to note that this reform also seeks to boost sales of real estate and the construction sector.
In relation to the pension system, chilean government seeks an increase in the mandatory contribution, they seeks move this contribution from 10% to 14% in a term of 8 years increasing 0,5 % by year, which also seeks transparency in the system and improvement in the control of pensions