During this week, an indication to the Bill that Reduces or Eliminates Tax Exemptions was admitted and approved by the Finance Committee, which establishes an annual tax on the net worth of individuals whose net worth exceeds USD 5,000,000.
a. Taxable event: Patrimony of individuals with domicile or residence in Chile exceeding USD 5,000,000 (in addition to the patrimony of their relatives: spouse or civil partner and children not legally emancipated).
b. Determination of net worth: The total assets owned by the taxpayer must be computed and valued according to their market value. It allows the deduction of debts as long as they are reliably evidenced.
c. Taxable base: That part of the patrimony of individuals that exceeds USD 5,000,000.
d. Rate: 1.5% on that part exceeding USD 5,000,000 and 2.5% on that part exceeding USD 22,000,000.
e. Residence rules: For tax purposes, all those individuals who have had domicile or residence in Chile during 3 of the last 5 years prior to the year in which the tax must be declared and paid are considered domiciled or resident in the country.
f. Accrual, declaration and payment: The tax will accrue on December 31 of each year and must be declared and paid within 6 months from the date of accrual.
According to the proposed transitory rule, this tax would become effective and accrue as of its publication in the Official Gazette, affecting individuals and estates that meet the requirements as of December 31, 2021.