LAW NO. 20,259 PROVIDES FOR A TEMPORARY REDUCTION OF THE TAX ON AUTOMOTIVE GASOLINE AND MODIFIES OTHER LEGAL BODIES Having regard to the fact that the National Congress has given its approval to the following Bill: Article 1.- |! |twenty-four months to count from the entry into force of |! |the modification provided for in article 5 ° of this law |! |to article 21 of decree law No. 910, of 1975, the |! | Tax on the Automotive Gasolines, established in the |! |article 6 ° of law No. 18.502, will be applied with a |! |fixed component of 6 (six) UTM/m3 (tax units |! |monthly per cubic meter) and a variable component, |! |that will be subtracted from the fixed component, determined from the |! |following form: (i) The variable component will be 2.5 (two comma |! |five) UTM/m3 when the value of quote in the |! |markets West Texas oil |! | Intermediate, henceforth WTI, has exceeded, in |! |average over the previous twelve months, the 85 |! | (eighty-five) U.S. dollars of |! | America per barrel; (ii) The variable component will be 2 (2) |! |UTM/m3 when the value of quotation in the markets |! |international WTI oil has exceeded, in |! |average, during the previous twelve months, the 80 |! | (eighty) dollars of the United States of America by |! |barrel and has not exceeded 85 (eighty-five) |! |of such dollars in equal period; (iii) variable component will be 1.5 (a comma five) UTM/m3 when the value of the quotation in international oil markets WTI has not exceeded, on average, during the previous twelve months, the 80 (eighty) dollars of the United States America per barrel. (iv) DELETED (v) DELETED (vi) DELETED The National Energy Commission will report the value |! |WTI oil listing according to the price |! |reported by the Department of Energy of the States |! | United of America. In case such information is |! |discontinued, the value of trading of the |! |crude will be reported in the New York Mercantile Exchange |! | (NYMEX). For these purposes the twelve months shall be the |! |before the fixing referred to in the paragraph |! |below. For the purposes of this article, the value of |! |WTI oil quote will be used with two |! |decimals, truncating the rest. The calculation of the tax rate will be carried out |! |monthly by the Ministry of Finance. Each time |! |that of this calculation be determined to correspond |! |modify the variable component of the tax, |! |by decree of the Ministry of Finance, issued |! |under the formula "By Order of the President of the |! | Republic", the rate will be fixed The resulting tax, |! |the one that will govern for the determination of the tax to |! |the automotive gasolines from the first day |! |the month following that of its publication. REPEALED PARAGRAPH |! | |! | |! | Article 2 °.-Derogase, to count of the entry into force of the modification provided for in article 5 ° of this law to article 21 of decree law N ° 910, of 1975, the transitory article of law No. 20,130. Article 3.-To count from day 1 of the month following the entry into force of the amendment provided for in Article 5 of this law to Article 21 of Decree Law No. 910, 1975, the taxpayers of the Value Added Tax established in the Title II of Decree Law No. 825 of 1974, declaring such tax by electronic means or in the non-electronic form determined by the Internal Revenue Service by resolution and paying or supporting the Tax of Timbers and Stampillas, may add to the Tax credit of the Value Added Tax in the form and under the conditions that set out in this article. The taxpayers of the Value Added Tax who declare that tax by the means authorized by the Internal Revenue Service by means of such a resolution, may make the aggregation to the tax credit to be counted on the first day of the following month to the date of such a decision, which shall be issued within eight months of the entry into force of this law. These taxpayers, in compliance with the other conditions set out in this article, in the first declaration of Value Added Tax in which they make use of the profit, according to this mechanism, may add as credit the Tax of Timbers and Stampillas paid or supported from the first day of the month following the entry into force of the amendment introduced by Article 5 of this Law to Article 21 of Decree Law No 910 of 1975, and the last day of the month by which the Tax return to the respective Value Added Value. The taxpayers entitled to the credit referred to will be those whose income annualized by sales and services of the rotation, from the three calendar years prior to that tax period in which the credit for the Timbres Tax is to be added and Eestampillas, have not exceeded the equivalent of sixty thousand monthly tax units in any of the respective years indicated. In the case of fractions of calendar years, the sales limit will be reduced to the figure of multiplying five thousand monthly tax units for the number of active months of each period, considering the month as a month whole. In each month, the tax credit of the Value Added Tax may be added equal to the sum of the Tax of Timbers and Stampillas as set out in Article 1 (3), Articles 2, 2 (a) and 3 (3) of Decree Law No 3,475, 1980, due to the transactions of the same month, without the right to recover it from third parties, and which are related to the change of the taxpayer. The cumulative annual amount of Timbers and Stampels Tax that may increase the tax credit of the taxpayer for each calendar year, may not exceed the lower amount between: a) 1.2% (one comma two percent) of the sales revenue and Services of the previous calendar year, and (b) the equivalent of thirty-five monthly tax units. However, if the volume of income from sales and services of the previous year's taxpayer's turn determines an accreditable tax limit of less than three monthly tax units, the taxpayer will be able to credit the tax Timbres and Eestampillas up to the equivalent of three monthly tax units. Also, in the case of taxpayers who do not register sales in the previous calendar year for being the year in which their activities began, the accreditable tax may not exceed 15 monthly tax units. If during the year in which the credit established in this article has been added the annual income from sales and services of the taxpayer exceeds sixty thousand monthly tax units, the accumulated amount of credit of the year must be reintegrated in the month following the month in which the limit is exceeded, increasing the tax debit of the taxpayer in the same amount adjusted in the manner provided for in Article 27 of Decree Law No. 825 of 1974. For the purposes of this article, sales and service revenues will be considered for their net Value Added Tax values. In addition, the amounts expressed in monthly tax units shall be calculated according to the value of that unit for the last working day of the corresponding period. The taxpayer must prove the payment or withholding of the Tax of Timbers and Stampillas, when required by the Internal Revenue Service, with the corresponding declaration, or with a record of having made the payment, in the case of its being the whole of the tax or payment certificate on the Internet, or with a certificate issued by electronic means, or in the form determined by this Service, by the taxpayer who has recharged the tax. Such certificate shall be issued at the request of the taxpayer in the form, time and term to be established by the taxpayer. The taxpayer who recharges the tax issued by the certificate must inform the Internal Revenue Service, in the form, periodicity, conditions and deadlines that it determines. The default in the issuance or incomplete issuance of the certificates referred to in paragraph 10 of this Article or the incomplete or extemporaneous issuance of the report referred to in paragraph 11 shall be punishable by a fine from a tax unit. a monthly tax unit, for each non-compliance, which shall be applied by the Internal Revenue Service in accordance with the procedure laid down in Article 165 of the Tax Code. The amount of the Tax of Timbers and Stampillas used as tax credit, in accordance with the provisions of this article, cannot be deducted as expenditure for the purposes of determining the taxes established in the Law of Income. However, this amount will not be affected by the tax contained in Article 21 of that law. Article 4 °.-To establish, to count of the entry into force of the amendment provided for in article 5 ° of this law to article 21 of decree law N ° 910, of 1975, an annual bonus of tax charge equivalent to 100% of the value of the tax (a) the date of the entry into the territory of the territory of the Member State of the territory of the territory of the Member State of the territory of the Member State of the territory of the Member State of the European Union; Registration of Motor Vehicles from March 1, 2008 until March 31, 2010, and which comply with the requirements and conditions set out below. 1. A hybrid vehicle shall be understood to be capable of being displaced using both an internal combustion engine and an electrical energy storage system produced by the vehicle as a source of energy. These vehicles must they have been approved as hybrids according to the approval process contained in Decree No 54 of 1997 of the Ministry of Transport and Telecommunications, which is affected by the annual tax for the movement permit referred to in the Previous subparagraph and entered in the register referred to in paragraph 3 of this Article. 2. The allowance shall be granted for the number of years applicable, according to the value of the vehicle's sale in accordance with the scale set out in this number, and shall govern the registration of the vehicle in the Vehicle Register Motorized. In the case of hybrid cars whose total value in their first sale is less than the equivalent in weights of 730 (seven hundred and thirty) promotion units, according to the value of that unit at the date of sale, the allowance shall be given by four years. In the case of hybrid cars whose total value at the time of their first sale is equal to or greater than the equivalent in weights of 730 (seven hundred and thirty) promotion units, according to the value of that unit at the date of sale, the allowance is will deliver for two years. Vehicles whose total value at the time of their first sale is greater than the equivalent in weights of 1,220 (thousand two hundred and twenty) promotion units shall not be eligible for this allowance, in accordance with the value of that unit at the date of sale. 3. The Ministry of Transport and Telecommunications shall maintain and publish, on a regular basis, a register of hybrid cars eligible for this bonus, hereinafter the Register, which shall contain the list of vehicle models which comply with the approval requirements. Vehicles shall be incorporated in the register to be counted for the issue of the respective type-approval certificate. The Register shall be published within thirty days of the publication of this law and shall contain the list of the models which meet the requirements and conditions laid down in this Article. 4. Within the ninety days following the publication of this law, the Ministry of Finance will establish, by means of supreme decree, a regulation for the application of this benefit, in which it will establish the procedure according to which it is grant the bonus, by the Treasury Department, who may pay it by means of a nominee check or deposit in the current account, savings in time, or the view held by the beneficiary. This Regulation shall also lay down the conditions and requirements to be established by the beneficiaries in order to apply for the respective payment, which may include the proof of payment of the payment of the respective year's circulation permit, the invoice for the purchase of the vehicle, the certificate of registration and endorsements in force and the certificate of technical and gas emission review in force. Article 5 °.-Introduces, as from the date of publication of this law, the following amendments to Article 21 of Decree Law No 910, 1975: 1) In the first paragraph, replace the expressions " and in the general contracts of construction other than for the administration of such buildings, in accordance with the provisions of Decree Law No 825 of 1974. " " the value of which does not exceed 4,500 units of promotion, with a ceiling of up to 225 (two hundred and twenty-five) housing promotion units, and in the general contracts for the construction of such buildings other than by administration, with the same ceiling by housing, in accordance with the provisions of Decree Law No 825 of 1974. ' 2) In the first sentence of the second indent, the expressions "shall also be applicable to the expressions" shall also be applicable, without the limitations of the amount indicated above, to the ". 3) Add, in the third indent, the following sentence following the separate point (.), which happens to be followed (.): "To access the benefit the construction company must have the respective municipal building permit." 4) The following new point is inserted after the third indent: " Except for those contracts which fall exclusively on the dwellings referred to in Article 3 of Decree Law No 2,552 of 1979 of the Ministry of Housing and Urbanism, the benefit provided in the first subparagraph shall not apply to contracts of extension, modification, repair or maintenance, not even in cases that could involve the variation of the originally constructed area, nor the general construction contracts, other than administration, referring to the (5) Intercalanse the following new points, new, following the current final point: " In the case of construction contracts relating to more than one dwelling, in order to access the benefit, the contract must indicate the price unit of construction of the dwellings, including in this the value of the goods common to build, pro rata of the respective built surfaces. Where the general construction contract includes buildings for a room, which do not exceed 4,500 units of promotion and other units exceeding that amount, the imputable benefit in each billing of a payment statement shall be the amount resulting from the apply, to the total potential credit, the proportion that the payment status represents in respect of the total construction price of the contract dwellings. The total potential credit will be equal to the sum of the individual housing credits to be built with the right to the benefit. The changes or early term of a general construction contract, which cause changes to the potential credit available initially, will result in the corresponding adjustment in the following payment states, with the consequent the right to credit or the respective repayment obligation. In the case of a general construction contract intended to complete the construction of buildings for a room, the preceding rules shall also apply, but, in order to establish the potential credit available, in the calculation of the individual credit of the dwellings, the sum of the individual price of construction of the contract must be considered plus the value of the pre-existing works, which must be declared in the contract. The construction companies must inform the Internal Revenue Service, in the opportunity and form that it determines, the background that will serve as a basis for the calculation of the profit, as well as the buyers of the buildings or the mandants for general construction contracts, other than for administration. Notwithstanding the above, until 30 June 2009, construction companies will have the right to deduct from the amount of their mandatory provisional payments of the Law on Income Tax the 0.65 of the Value added tax to be determined in the sale of real estate for room by them constructed and in general construction contracts other than for the management of such buildings, according to the provisions of Decree Law No 825 of 1974, in both cases, without the requirement to have prior to municipal building permit. In the case of general contracts for the construction of buildings for rooms, other than for administration, concluded before 1 July 2009, they shall be subject to the benefit of the preceding subparagraph if they have obtained the respective permission (a) municipal building before that date and provided that the works have already been initiated as of 31 December 2009. Transitional Article.-The greatest fiscal expenditure that could be irrogated by the application of Article 4 ° of this law during the year 2008, will be financed through budgetary reallocations of the subsidy program of the Treasury Budget And because I have had to approve and sanction it; therefore, promulgate and take effect as the Law of the Republic. Santiago, March 24, 2008. -MICHELLE BACHELET JERÍA, President of the Republic.-Andrés Velasco Branes, Minister of Finance What I transcribe to you for your knowledge.-Salute intently to you, Maria Olivia Recart Herrera, Undersecretary of Finance.