According to Presidential Message No. 072-373, on July 21st, 2025, the Ministry of Finance submitted to the Chamber of Deputies the “Bill that introduces benefits for the middle class, modifies the taxation of small and medium-sized enterprises, reduces exemptions, and amends other provisions” (the “Tax Reform Bill”).

This legislative initiative is based on the recommendations issued in January 2021 by the Tax Commission for Growth and Equity, which, among other aspects, proposed significant changes to the exemptions applicable to public and private investment funds. Among others, these changes aim to:

• Prevent the permanent deferral of the first category tax.
• Restrict the preferential tax treatment received by investment funds by eliminating the first category tax exemption for private funds.
• Increase the single tax applicable to profits remitted by public funds to taxpayers without domicile or residence in Chile from 10% to 20%.

In this regard, our Capital Markets team prepared a detailed report.

Read the full document here.