On 15 May 2024, Congress approved the bill that “creates a Transitional Emergency Fund for fires and establishes other measures for reconstruction”, which is in the final stages prior to its publication and subsequent entry into force.

This bill aims to establish an institutional framework to organise public efforts to cover the costs of reconstruction and other recovery measures to be implemented in the Valparaíso Region as a result of the fires that occurred in February 2024.

Within the framework of “other reconstruction measures”, the bill creates an optional regime of substitute taxation for final taxes (also called ISFUT), with different modalities for companies under the general taxation regime (article 14 A of the Income Tax Law) and under the SME regime (article 14 D N° 3 of the Income Tax Law).

The Barros & Errázuriz Tax team prepared a report on the main aspects of the project.

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