Chile's government is considering adding a provision to postpone the Internal Revenue Service's property revaluation from January 2026 to 2027 in the public sector adjustment bill, set for December discussion. Originally part of a stalled pymes tax reform, the measure gains opposition lawmakers' support to ease territorial tax burdens. It addresses criticisms over fiscal calculation transparency.
In July, the government submitted a bill to Congress to reform the pymes tax system, including a provision to postpone the Internal Revenue Service's (SII) property revaluation by one year from January 2026. Finance Minister Mario Marcel stated the measure aims to "have time to address all the difficulties identified and improve the methodologies and their application to property valuations." If approved, the new valuation would take effect in January 2027, amid criticisms of opacity in fiscal calculations and territorial tax rates.
However, the pymes reform bill has made little progress in Parliament without Executive urgency, risking its approval before 2026. In response, the Finance Ministry is considering adding the provision to the public sector adjustment bill, to be filed in early December and approved that month. This option has been welcomed by the opposition, the main drivers behind delaying the revaluation.
Senator Ximena Rincón (Demócratas), chair of the Senate Finance Committee, who proposed a constitutional reform to freeze the revaluation, said: "I raised it in the first joint Budget subcommittee as an alternative to supporting my revaluation freeze project." Senator Javier Macaya (UDI) views it positively: "It's an interesting proposal. More details are needed, but I would support it in principle, as relief for people is required."
Among deputies, Felipe Donoso (UDI) noted that "the fiscal valuation has distanced itself from reality, generating a series of problems," and backed the temporary freeze, though stressing it's not permanent. Miguel Mellado criticized the government's delay on the pymes bill and supported the inclusion, while Agustín Romero (Republican) and Frank Sauerbaum (RN) offered conditional backing pending details, emphasizing the urgency to prevent contribution increases.