On June 14, 2020, the Ministry of Finance and the expanded Finance Commission, made up of opposition parliamentarians and the government, presented a document summarizing the issues on which there is a framework of understanding in order to build an “Emergency Plan for the Protection of Family Income and the Economic and Employment Reactivation, in addition to a medium-term fiscal convergence framework”, with the aim of implementing measures to address the COVID 2019 Pandemic.

Among the measures, it is intended to implement a package of tax measures of a transitory, among which are:

1. Reduce by half the first category tax of the Pro-Small Business regime of the income tax law for the business years 2020, 2021 and 2022.
2. Extend the suspension of payment of PPMs by 3 months.
3. To carry out, exceptionally, a refund of the remaining VAT tax credit to Small Business that meet certain conditions of proper tax compliance.
4. Extend the instantaneous depreciation scheme to 100% until December 31, 2022.
5. For the year 2021, release the regional contribution of 1% to investment projects, where said amount will be contributed to the regions from the fiscal coffers.

The agreements contained in this document would be the subject of a future bill, which, in order to enter into force, must be previously discussed, approved, promulgated and published.

Should you require additional information on this matter, you may contact Rafael Valdivieso (rvaldivieso@jdf.cl) and/or Martín Hudson (mhudson@jdf.cl).