Chilean Tax Reform (Frequently Asked Questions)

...Chilean president Michelle Bachelet presented a reform package to Congress that seeks to increase fiscal revenues by raising the corporate income tax rate, eliminating the Fondo de Utilidad Tributaria (FUT), setting/increasing specific taxes (such as those on non-alcoholic beverages with high sugar content and alcoholic beverages) and reducing tax breaks and exemptions. The reform is subject to congressional debate, and its passage is expected this year. Fitch Ratings is publishing this frequently asked questions report covering the specific reform proposals to add more insight into the potential impact on its rated Chilean portfolio. Click on the questions below to read a detailed explanation of the various reform proposals. Are some companies more sensitive than others to the increase in corporate income tax from 20% to 25%? Could there be an impact on dividend policies as a result of FUT elimination? Will increased tax on beverages with high sugar content affect credit profiles? Which...

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