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Insurance Companies Lose Tax Fight in Chile’s Top Court (1)

April 14, 2021, 9:59 PM; Updated: April 14, 2021, 11:30 PM

Chile’s top court has rejected an appeal by financial services giants Principal, Sura, and Zurich to stop the country’s tax authority from taxing capital gains earned on life insurance policies with saving plans.

The case covers life insurance policies with individual capital accounts that allow policyholders to make withdrawals during their lifetime. Compensation from insurance policies is considered non-taxable income under Chile’s tax code, so insurance companies have long marketed the product to clients toting its tax advantages.

Upholding a July 2020 ruling by the Santiago Court of Appeals, the Supreme Court on Tuesday blocked the injunctions requested by the...

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