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AMENDS THE TAX REGIME AFFECTING THE IMPORT OF CARS WITH SPECIAL ALLOWANCES

Original Language Title: MODIFICA EL REGIMEN TRIBUTARIO QUE AFECTA LA IMPORTACION DE AUTOMOVILES ACOGIDOS A FRANQUICIAS ESPECIALES

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CHANGES THE TAX REGIME AFFECTING THE IMPORT OF CARS WITH SPECIAL ALLOWANCES Having regard to the fact that the National Congress has |! |given its approval to the following P r o y e c t o d e l e y: The following changes in the Customs Tariff: 1.-Eliminate in the first indent of the National Legal Note No. 3 of Section 0, the last part after the point followed (.), which becomes a separate point (.). 2.-In the National Legal Note No 3 of Section 0, the following second and third points, with the fourth and fifth points of the current second and third points, will be added: '' For the calculation of these rights, the tax base will be constituted by the customs value of the vehicle, minus the depreciation per use, which shall be ten per cent for each full year elapsed between 1 January of the year of the model year and the time when such duties are paid. If the customs value has already been considered to be reduced by use, only depreciation will be taken for the years not taken into account. The rights set out above will be rotated by the National Customs Service, to the person receiving the franchise, who must find them in tax coffers within 10 days of the date of the turn. Notaries will not be able to authorize any document or the signatures placed on it, dealing with a contract affected the rights in reference, without being credited previously with the payment of these charges, and must be aware of this fact in the respective instrument. In addition, the Civil Registry and Identification Service shall not register in its register of motor vehicles any transfer of the vehicles concerned to the rights, if not in the respective title, the fact that the rights have been paid 3.-Remove the current third indent, which has become the fifth indent, of the National Legal Note No. 3 of Section 0. The current fourth indent has become a fifth indent. 4.-The glosa of heading 00.04, Section 0, be replaced by the following: "Personal effects, household goods, equipment and work tools, of Chilean officials or employees, who provide their services abroad." 5. Second, No. 5 of National Legal Note No. 1 of Section 0, Item 0.04. 6.-Replace in the glosa of the Partida 0.05 the expressions '' sixty thousand '' and '' thirty-eight thousand '' by the expressions '' one hundred and twenty thousand '' and '' eighty thousand '', respectively. Article 2.-Replace the current article 40º |! |of the decree with force of law N ° 33, 1979, of the |! | Ministry of Foreign Affairs, by the following: '' Article 40º.-The officials of Primera a |! | Seventh Category of the Plant '' A '', budget in |! |foreign currency, which return to the country by term of |! |your destination abroad, will enjoy a |! |allowance for change of residence, which is not |! |will consider salary for any legal effect, of an amount |! |equivalent to the indicated in the following table, expressed |! |in U.T.M.: Grade First Installation Assignment Foreign Category 325 Second Foreign Category 307 Third Foreign Category 289 Fourth Foreign Category 252 Fifth Foreign Category 210 Sixth Foreign Category 170 Seventh Foreign Category 126 They shall not be entitled to this allocation. |! |officials who request their membership to the country for |! |particular reasons. '' Article 3.-Introduces the following amendments to Article 200 of the decree with force of law Nº1 (G), 1997, of the Ministry of National Defense: (a) Add the following third indent to (a): '' However, personnel returning to the country after having served a foreign commission of one year or more, and the one who, by resolution of the Supreme Government, ceases to be in those duties before (a) to conclude that period, shall have an increase in the allocation referred to in the preceding subparagraph, in the amount of 50% of the annual base salary in the corresponding dollar, to be granted and paid in accordance with the rules laid down in that subparagraph; (b) In the first paragraph of point (g), the expression 'a sporting vessel and a vehicle' is replaced by the following: land ''. Article 4.-Enter the following modifications in the tenth second indent of article 35 of Law No. 13.039: a) In the 2nd number, replace the entire final part that begins with the words '' except that previously ... '' for the following: ' except that the balance of the duties and taxes in force in the rest of the country which should have been collected at the time of the importation of the vehicle in the liberated area, without the reductions set out in the preceding points, has been paid. This disaffection will be taxed with the Value Added Tax contained in Title II of Decree Law No. 825 of 1974. b) Add as number 3, the following: " 3rd.-For the calculation of these duties and taxes, the tax base will be constituted by the customs value of the vehicle, minus the depreciation per use. This depreciation will amount to ten percent for each full year between January 1 of the year of the model year and the time when these duties and taxes are paid, with a cap of 70%. The duties and taxes determined in accordance with the above will be rotated by the National Customs Service to the beneficiary of the franchise, who must find them in tax coffers within 10 days of the date of the (c) Add as number 4, the following: '' 4th.-Notaries may not authorize any document or the signatures placed on it, in the case of a contract that falls on the aforementioned vehicles affected to the rights and taxes mentioned, without they are previously credited with their payment, and must be aware of this fact in the instrument respective. Likewise, the Civil Registry and Identification Service shall not register in its Registry of Motor Vehicles any transfer of the vehicles affected to the duties and taxes set out in this paragraph, if I shall not record, in the Title (i) the fact that the taxes have been paid. Article 5.-Enter the following amendments in Decree Law No 825, 1974: (a) In point (a) of Article 8, add the following two points, replacing the semicolon (;) with a separate point (.): '' It shall also be considered as a sale the first disposal of motor vehicles imported under the heading of Chapter 0 of the Customs Tariff, under which they enjoy total or partial exemption from duties and taxes in respect of those which would affect them under the scheme general. Notaries will not be able to authorize any document or the signatures placed on it, dealing with a contract affected the tax that taxes the operation set out in the previous paragraph, without being credited previously with the payment of the same. record of this fact in the respective instrument. In turn, the Civil Registry and Identification Service shall not register in its Register of Motor Vehicles any transfer of the vehicles indicated, if not, in the respective Title, the fact that the tax has been paid; ' Article 11 (b) adds after the semicolon (;) that it becomes a comma (,), the following sentence: '' or the operation described in the second subparagraph of Article 8 (a); ''. (c) In Article 12: 1.-In point 1 of the letter A.-add next to the point, which happens to be followed, the following: " Also excepted from the This exemption shall be granted to used motor vehicles which have not paid the tax at the time of the admission to which they are subject to relief, in accordance with the provisions of the second and third subparagraphs of point (a) of the Article 8º. 2.-In point B.-No. 5, delete the phrase "a sports boat and a ground motor vehicle" and the comma (,) that follows it. (d) in Article 16 (a), add after the semicolon (;), which becomes a separate point (.), the following new point: '' To determine the tax affecting the operation laid down in the second subparagraph of Article 8 (a), the same tax base of imports minus depreciation for use shall be considered. This depreciation shall be ten per cent for each full year between 1 January of the year of the model year and the time the tax is paid, unless the customs value has already been deemed to be reduced by use, in the case of The following changes will be made in the first article: 1.-The figure of US$ 10,004.73 is to be replaced by the figure $15,000. 2.-Add the following final points: ' The tax laid down in this Article shall also apply in the first sale in the country to the vehicles referred to in the first subparagraph, which have been imported under the heading of the Chapter 0 of the Customs Tariff, under which they enjoy total or partial exemption from duties and taxes in respect of those which would affect them in the general scheme. The same rules as apply for the value added tax shall be considered to be applicable to the value added tax imposed by the operation laid down in the second subparagraph of Article 8 (a) in respect of the subject of the tax, his accrual, the determination of the tax base, the period in which it is to be heard in tax coffers and the penalties provided. Notaries will not be able to authorize any document or the signatures placed on it, in the case of a contract of those affections to the tax referred to in the previous paragraph, without being credited in advance of the payment of said tribute, constancy of this hech or in the respective instrument. Likewise, the Civil Registry and Identification Service will not register in your Registry of Motor Vehicles any transfer affects the tax indicated, if I will not record the fact of your payment, in the corresponding title. ''. Article 6.-The following amendments to Article 6 of Law No 17.238: 1.-In the third indent, add the following point (.), which becomes the following point (.), the following: " For the purposes of this import, in 2.-In the fourth indent: (a) Replace the guardom "US$ 8.385.60 '' for" US$ 15,000. " (b) Substitute in the final part, which follows after the point followed (.), the sentence 'in Article 1 °, N ° 4, of Decree Law 2,976, 1979' 'by' in Article 46a of Decree Law No 825 of 1974 '. Article 7.-By means of a supreme decree issued through the Ministry of Transport and Telecommunications, the security elements with which the motor vehicles that are imported and the date from the date of the which these will be required, being able to differentiate according to models or categories of vehicles. The decree must be issued within six months from the date of publication of the law. Article 8.-The National Register of Drivers of the Civil Registry and Identification Service, in the case of light motor vehicles for the carriage of passengers, which are entered into the country according to the Customs Tariff Item 00.005, will do direct delivery of the corresponding municipal boards to the Ministry of Foreign Affairs, which shall keep them in their possession, upon delivery, to those who have made use of that franchise, of the respective diplomatic or consular plates, for International organizations and for administrative and technical personnel. In the case of heavy or cargo vehicles, boarding the country under the conditions described in the preceding paragraph and under international aid programmes or projects dependent on International Bodies, may circulate with the Municipal boards granted by the National Registry of Drivers of the Civil Registry and Identification Service, according to the Ministry of Foreign Affairs. First transitional article.-The staff of the foreign service and the secretariat and general administration of the Ministry of Foreign Affairs and Public Services subject to the dependence of the President of the Republic of this Ministry, and the officials who are dependent on the Ministry of National Defense, who comply with the requirements to qualify for the franchise of Partida 00.04 del Arancel Customs, and that the date of publication of this law is found fulfilling duties abroad, will maintain the benefit of being able to import a return to the country Article 200 of the decree with force of law Nº1 (G), 1997, of the Ministry of National Defense, prior to the modifications introduced by the numbers 4. and 5 of Article 1 and 3 (b) of this law. In the case where the officials referred to in the preceding subparagraph carry out the importation of a land vehicle, the allowances for the change of residence which they enjoy shall be those in force before the amendments made to Article 2 and point (a) of Article 3 of this Law. Otherwise, the residence change assignments will be those set forth in this law. Second transitional article.-The greatest tax expense that the application of this law will irrogate, during the year 1999, will be financed from the reallocations of the resources contemplated in the current budgets of the Ministries of Relations Foreign and National Defense, as appropriate, and in what I will not achieve, under item 50-01-03-25-33.104 of the Public Treasury's Public Sector Budget, for the year 1999. '' And because I have had to approve and sanction it; therefore, promulgate and take effect as the Law of the Republic. Santiago, 31 August 1999.-EDUARDO FREI RUIZ-TAGLE, President of the Republic.-Eduardo Aninat Ureta, Minister of Finance.-Juan Gabriel Valdés Soublette, Minister of Foreign Affairs.-Edmundo Pérez Yoma, Minister of National Defense.-José Miguel Insulza Salinas, Secretary General of the Presidency.-Claudio Hohmann Barrientos, Minister of Transport and Telecommunications. What I transcribe to you for your knowledge.-Salute to Ud., Manuel Marfan Lewis, Undersecretary of Finance.