Finally, and after long hours of negotiation, the Chilean Ministry of Finance presented a set of six tax modifications to finance the creation of a Universal Guaranteed Pension (PGU), which will cost 0.9% of the Gross Domestic Product (GDP) in regime.
As explained by the Minister of Finance, Rodrigo Cerda, before the Senate branch commission, the adjustments seek to collect the equivalent of 0.67 points of the Product and contemplate changes to the taxation of mining patents, the surcharge on high-value real estate, a new tax on high-value vehicles and terms of benefits for withdrawals of freely available surpluses, among others.
On the side of mining patents, changes in taxation and duration of the two existing types were put on the table: exploration and exploitation. Thus, on the one hand, it aims to increase the term of the exploration patent from two to four years, but eliminating the possibility of renewal for two years that the legislation contemplates today. In turn, the amount of the patent would be increased from 1/50 UTM per hectare to 3/50 UTM per hectare.
With respect to the values of the exploitation patents, a progressive scale is created according to the passing of the years for concessions that do not show work, starting at 4/10 UTM per hectare for the first five years, up to 12 UTM per hectare for patents since the year 31.
If the progressive patent system is implemented, it could increase the collection from 60 million dollars to up to 430 million dollars, of which 300 million dollars would go to the Central Government and the other part will benefit the National Fund for Regional Development (FNDR) and to the municipalities.
The Treasury proposes to increase the rate for properties that have a fiscal value of more than $900 million (one million dollars), going from the current rate of 0.275% to 0.425 percent. Said adjustment would affect 18,000 taxpayers and would come into force on January 1, 2023. This modification would allow the collection of 126 million dollars. In luxury products, it is proposed to incorporate an annual tax of 2% on the tax assessment, which is paid in addition to the payment of circulation permits or equivalent.