In this note we will explain, as specialists in tax compliance, how the Tax Reform will keep the Non-Rental type on Article 107 of the Income Tax Law (LIR).
Tax Reform contained in Law 20.780 modifies tax systems applicable to the greater value (good) generated in the sale of shares, although it was conservative on keeping the non-rental income type stated on Article 107 of the LIR.
Indeed, there is no current taxation when an investor complies with the acquisition requirements stated on said article and also with the requirements stated when there is a sale of shares.
There are three forms of acquisition that initially allows to not pay taxes in the sale of shares, being the purchasing operations in stock exchange authorized by the Superintendence of Securities and Insurance (SVS) the most common and easy to verify.
On the other hand, there are also three forms of sale of shares that allows to apply for the same, being also the sale operations in stock exchange of the same characteristics as mentioned before the most feasible.
Also, there is a requirement that is transversal to the different transfer methods, stating that every sale operation has to be made on the day that the share has had “market presence” or has had it on the last 90 days before the transfer.