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Daily Tax Report: International

Chile Investment Firms Expected To Challenge Municipal Taxes

Oct. 3, 2019, 9:05 PM

Investment companies in Chile will likely begin demanding exemption from a municipal business tax after a ruling by the country’s highest court.

Chile’s Supreme Court in an Oct. 2 ruling upheld an injunction bought by Inversiones Los Peumos Ltda against tax demands made by the Municipality of Lo Barnechea, a leafy suburb of northeast Santiago. Municipalities levy the tax on companies at rate of between 0.25 and 0.50% on the value of their declared equity, up to a maximum of Chilean Peso 390 million ($549,000).

The decision threatens to leave a big hole in the finances of Chile’s 345 municipal...

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