President José Antonio Kast's administration is set to introduce a miscellaneous bill this Wednesday proposing the reinstatement of tax stability for large-scale investment projects. The measure aims to ensure that the tax conditions in effect at the start of a project remain unchanged for a period of 20 to 25 years.
According to reports from latercera.com, the proposal specifically targets investments exceeding US$50 million, covering both foreign and domestic capital. This mechanism seeks to revive the essence of the former Decree Law 600—which was repealed in 2016—but with an expanded scope designed to foster local development.
The initiative is part of a broader reform package that includes reducing the corporate tax rate from 27% to 23% over a three-year period between 2028 and 2030. The administration's goal is to stimulate economic growth, investment, and job creation by reintegrating a more stable tax system.
Stability for Investment
Experts consulted by the news outlet highlighted the potential for this measure to boost Chile's regional competitiveness. Javier Jaque, lead partner at CCL Auditores Consultores, noted that tax stability was a fundamental pillar of Chile's development during the 1980s and 90s.
“From this perspective, any regulation moving in that direction will help economic development,” Jaque stated, suggesting that timelines could vary by industry, such as offering 20 years for mining and 10 years for smaller-scale projects.
Meanwhile, attorney Claudio Bustos, a partner at Bustos Tax & Legal, acknowledged that the regulation might not possess the same level of magnetic pull as it did in previous decades given the country's current political stability. However, he emphasized that the measure remains a relevant competitive factor compared to other Latin American nations that lack such certainty.
Vanesa Lanciotti, economist and lead partner of Tax & Legal at Deloitte, emphasized that in an open economy like Chile's, foreign investment requires clear and credible rules. “Tax stability can be a useful tool if it is well-designed,” the expert maintained.
Lanciotti warned that the duration of the measure should not be arbitrary but should instead respond to the specific variables of each sector. According to the economist, the timeframe for investment recovery varies substantially across industries, making it impossible to set a single parameter for all cases.
