The Law Today

Chamber of Representatives rejects tax reform, preventing its discussion for one year.

09 Mar 2023


On March 8, 2023, the Chamber of Representatives rejected the tax reform bill. As a result, the Executive will not be able to present a new bill on the matter for one year, unless there is an agreement of the Senate by a two-thirds majority.

Among the matters considered in the bill were: the disintegration of the tax system and the creation of a dual system; the creation of a tax on accumulated profits pending taxation with the final taxes; the reduction of the IDPC rate for companies that join the Dual System, from 27% to 25%; the creation of a new substitute tax for the final taxes; the expansion of the SII’s inspection powers.

The rejection of the bill also implies, among other things, the rejection of the wealth tax; the increase of the top marginal rate of the Global Complementary Tax; the affectation of revocable donations with the inheritance and donations tax; the modification of the valuation rules contained in the inheritance and donations tax law; the elimination of the leasing of furnished real estate as a VAT taxable event.

Finally, it is important to bear in mind that, as a result of the rejection of the bill, companies under the Pro-SME regime would be taxed with the IDPC at a rate of 25% in the tax year 2024, not being applicable the gradual increase proposed by the Executive.


If you require additional information on this matter, please contact Rafael Valdivieso ( or Martín Hudson (