The first provisions of the “Omnibus Law” to take effect
Luis Alberto Aninat, partner at the Aninat firm, explains: “In the long run, the reduction of the First Category Tax from 27% to 23% and the tax stability provision are the substantive measures, because they restore competitiveness and, above all, provide certainty for anyone making long-term investments”.
The main pillars of the Reconstruction bill are now in a position to become law, after the Chamber of Deputies ratified nearly all of the changes made by the Senate to the initiative yesterday. Only one issue — regarding the state’s contribution to the Fondo Común Municipal (FCM, Common Municipal Fund) as a compensatory measure for exempting people aged 65 and older from property tax — remained unresolved between the two chambers and will need to be settled by a joint committee.
Once that final stage in Congress is complete — including any potential presidential vetoes — and after the bill undergoes review by the Constitutional Court (TC), various measures under the “omnibus law” will begin taking effect gradually. If the law is published in August, its temporary provisions will come into force starting in October.
Transitional Provisions
To help fund reconstruction following the wildfires in the Biobío and Ñuble regions, one of the first provisions to take effect will be the amendment to the gift tax. Under the bill, this rule will apply for one year, starting from the first day of the month following the law’s publication date.
Structural Changes
The corporate tax reduction will begin to take effect in the 2027 tax year. That year, the rate will drop from 27% to 25.5%, reaching the 23% rate by 2029.
Other structural changes that are also central to the reform — such as tax stability and compensation for the judicial annulment of an Environmental Qualification Resolution (RCA) — are subject to regulations to be issued by the Finance Ministry. Specialists estimate that these processes will begin in early 2027.
Luis Alberto Aninat, partner at the Aninat firm, explains: “In the long run, the reduction of the First Category Tax from 27% to 23% and the tax stability provision are the substantive measures, because they restore competitiveness and, above all, provide certainty for anyone making long-term investments”.
In his view, compensation for the annulment of an RCA “can be a mixed blessing.” “The measure is certainly justified, but it could end up making the approval process slower and excessively cautious,” he warns.
Read the full article published in El Mercurio.
