Chile tax reform advances to final Senate vote today
Chile's Kast tax reform faces its final Senate vote, requiring 26 votes for passage, with potential vetoes and court challenges still ahead. The outcome will determine whether major tax policy changes proceed in the country.
The final Senate vote in Valparaíso concerns the last article, which addresses municipal compensation tied to the over-65 first-home exemption. Approval requires 26 votes, but passage would not enact the law immediately.
Two presidential vetoes and a Constitutional Court challenge to eight articles still stand in the way. Notably, provisions for remote workers—including the three-year foreign-income exemption, absence of a wealth tax, and the US treaty—remain unchanged regardless of the outcome.
The outcome could reshape Chile's fiscal landscape, affecting local businesses and individual taxpayers if the reform proceeds. For foreign remote workers, the unchanged exemptions may preserve Chile's attractiveness as a base. However, the pending vetoes and court challenge could prolong uncertainty, potentially delaying any practical impact on investment and tax planning until legal hurdles are resolved.