The $26 billion plan aims to overhaul the country’s tax structure by placing taxes paid by conventional companies on par with their more modern peers. Digital companies which will be effected by the move include Uber and Netflix.
Chilean President Sebastian Pinera aims to “modernize” the country’s revenue generating system as well as overhaul the country’s tax structure. The move is aimed at drawing investment from local as well as foreign companies.
Pinera unveiled the reform drive in a televised address which among other proposals, is aimed at tweaking Chile’s tax structure such that taxes paid by conventional companies will be on par with those paid by digital technology companies.
The reform drive aims “to create a simpler and more equitable and fully integrated tax system for all Chilean companies.”
Foreign tech companies which are likely to be impacted by this reform drive include Netflix and Uber Technologies.
Despite a slow start, e-commerce is gaining traction in Latin America. In July 2018, the vice president of Amazon Web Services met Pinera to discuss its potential investment in the country as part of its long-term regional expansion plan.
A billionaire president who won a second term, Pinera has detailed a $26 billion spending plan that sees Chile continuing its “vigorous march toward development.”