On June 28th and 29th, Chile Day New York-Toronto took place, an event organised by Inbest Chile and the Ministry of Finance with the aim of promoting our country as an investment destination.

Our founding partner, Fernando Barros, participated in the first stage of the event in Toronto, in the panel ‘Fiscal Pact or Tax Reform?’, which was also attended by the Minister of Finance, Mario Marcel, the partner of EY Law, Angelo Nikolakakis, and was moderated by the former Undersecretary of Economy and advisor of Aguas Andinas, Katia Trusich.

In notes published by El Mercurio and El Diario Financiero, it was reported that Finance Minister Mario Marcel referred to the fiscal pact and tax non-compliance at the event, where he outlined that the bill should be approved in September, and commented: ‘the better we do on the tax compliance bill, the less need there will be for an income tax reform to generate net additional revenue’. He also said that progress would be made on a legal initiative on a possible increase in personal income tax when ‘we have made sufficient progress on the tax compliance bill’.

In this regard, Fernando Barros commented that taxes are an issue, but that there is another series of regulatory burdens that add to the costs of companies, including contributions, new charges for social policies (such as childcare), the 40-hour law or even the additional 6% pension contribution that is being discussed. ‘These may be well-intentioned initiatives, but they add costs,’ he emphasised.

We invite you to learn more about this event in the following links: 1, 2, 3, 4, 5.