José Antonio Kast's government will present a miscellaneous bill on Wednesday with over 40 measures, including a phased corporate tax cut from 27% to 23% between 2028 and 2030. The reduction will occur over three years: 1.5 points the first year, 1.5 the second, and 1 the third. Finance Minister Jorge Quiroz defended the measure as a boost to investment and employment.
The Chilean government plans to present a miscellaneous bill on Wednesday as part of the National Reconstruction Plan. The initiative prioritizes reducing bureaucracy, eliminating permits to facilitate investments, and a gradual cut in the first category tax from 27% to 23%, starting in 2028. According to sources close to the process, the reduction will be 1.5 percentage points the first year (to 25.5%), another 1.5 the second (to 24%), and 1 point the third, reaching full regime in 2030, the year Kast leaves La Moneda.
The tax system reintegration will go from 65% to 100% gradually, one-third per year. Other measures include the immediate elimination of the 10% tax on stock sales with high stock market presence, a tax invariability mechanism for large projects, 0% VAT on new housing sales for 12 months with no cap, elimination of property taxes for those over 65 on their first home, and formal employment subsidies.
On Monday, Finance Minister Jorge Quiroz defended the cut before the press at La Moneda and in a meeting with ruling party lawmakers. “It is a tax cut to increase investment, to increase employment. There are 150,000 companies that employ half of Chile's workers,” he stated. He emphasized that it first benefits small and medium-sized enterprises through a 15% tax credit on low wages and aims to recover 200,000 construction jobs lost.
“Let us not turn this into the typical caricature that some make, that any tax cut is to favor the richest. No, gentlemen, the economy is complicated here; we are going to get it back on track and we are going to do it very quickly,” Quiroz concluded, responding to opposition criticism.
