Chile Proposes New Foreign Investment Statute Ending Rate Freeze Option

Legislation has been proposed by the Chilean government for a new Foreign Investment Statute. The draft legislation would discontinue the option for foreign investors to freeze the tax rate at 42% for 10 years for new investments of USD 5 million or more. For new investment of USD 50 million or more in industrial or extractive projects the period is 20 years.

The draft legislation reportedly includes that the available fixed rate would be increased to 44.45% in 2016, and would no longer be a…