ANNOUNCEMENT 01 Apr 2020
On 01 April 2020, the Chilean government announced tax breaks and extensions for SMEs and other businesses, in response to the negative economic effects caused by the COVID-19 outbreak. Additional measures were introduced and prolonged on 03 July 2020.
NUMBER OF INTERVENTIONS
Ministerio de Hacienda. Ministry of Finance. 01/04/2020. Decreto 420, ESTABLECE MEDIDAS DE ÍNDOLE TRIBUTARIA, PARA APOYAR A LAS FAMILIAS, LOS TRABAJADORES Y A LAS MICRO, PEQUEÑAS Y MEDIANAS EMPRESAS, EN LAS DIFICULTADES GENERADAS POR LA PROPAGACIÓN DE LA ENFERMEDAD COVID-19 EN CHILE. Available at: https://www.leychile.cl/Navegar?idNorma=1143963
Ministerio de Hacienda. Ministry of Finance. 03/07/2020. Decreto 1043, MODIFICA DECRETO SUPREMO No 420, DE 30 DE MARZO DE 2020, DEL MINISTERIO DE HACIENDA, ESTABLECIENDO NUEVAS MEDIDAS DE ÍNDOLE TRIBUTARIA. Available at: https://www.leychile.cl/Navegar?idNorma=1147202&idParte=10133342&idVersion=2020-07-03
Ministerio de Hacienda. Ministry of Finance. 02/07/2020. Ministerio de Hacienda anuncias nuevas medidas tributarias para impulsar la economía e inyectar liquidez a las pymes. Available at: https://www.hacienda.cl/sala-de-prensa/noticias/historico/ministerio-de-hacienda-anuncias-nuevas.html
On 01 April 2020, through Decree 420, the Chilean Ministry of Finance announced the condonation of the Income Tax for the months of April, May, and June 2020. The measures are oriented at businesses that registered a drop in their gross income equal to or greater than 30% for the period January-May 2020 when compared to the same period in 2019.
According to the Ministry of Finance, the updated tax measures form part of the "Understanding Framework for an Emergency Plan and Economic Recovery", reached on 14 June 2020. Their objective is to inject liquidity to SMEs and other businesses in order to face the sanitary and economic crisis generated by the COVID-19 pandemic in Chile.
On 03 July 2020, the Ministry of Finance adopted Decree 1043, further extending this measure for the months of July, August, and September 2020.