Chile's Senate reportedly approved a bill on 18 August 2020 that provides emergency tax measures in response to the COVID-19 pandemic. Some of the main measures include:

• a temporary reduction in the corporate tax rate for SMEs under the Pro Pyme regime from 25% to 10% for the 2020, 2021, and 2022 fiscal years;
• a reduction in the monthly advance corporate tax payment rate on sales for SMEs from 0.25% to 0.125% for taxpayers with sales not exceeding 50,000 UF and from 0.5% to 0.25% for taxpayers with sales exceeding 50,000 UF;
• a full (100%) depreciation write-off for capital goods acquired from 1 June 2020 to 31 December 2022, as well as for intangible assets acquired for the interest, development, or maintenance of a company;
• a full VAT refund with respect to the balance of VAT input credits accumulated as per VAT returns filed in July, August, and September 2020, subject to the condition that the taxpayer's income has decreased by at least 30% compared to the same period in 2019.

The bill must be signed and published before entering into force. Additional details will be published once available.

Unidad de Fomento (UF) is an indexed unit equal to CLP 28,679.45 (~USD 36.92) as on 31 August 2020.

Note - This article has been updated to reflect that full depreciation write-off applies for assets acquired from 1 June 2020 to 31 December 2022.