CHILE Law and Practice Contributed by: Patrick Humphreys, Daniela Gazmuri Larraín, Paula Lühr, Ian Hinzpeter, Camila Leviante, Beatriz Riveros and José Luis Bravo, Garnham Abogados
data protection in Chile. Its functions will include over - sight, issuing guidance and instructions, handling cer - tain claims, maintaining compliance-related records, supervising international transfers and imposing sanc - tions for infringements. This will be a significant practical change for compa - nies. Businesses should expect more formal regula - tory expectations, greater scrutiny of privacy govern - ance and a stronger need to document compliance decisions. Multinational companies should also antici - pate that Chilean privacy compliance will become a board-level and operational risk issue, rather than a purely contractual or policy matter. Reforms are under way across several of the fields covered above. Some already enacted and being phased in, others still before Congress. The current administration has made a pro-investment, growth- focused agenda its priority, and this shapes much of what follows. The items below set out the direction of travel rather than settled law, and the current position should be confirmed before any decision is taken. Tax The most significant proposal is the tax bill intro - duced in March 2026 under the government’s National Reconstruction and Economic Development plan ( Plan de Reconstrucción Nacional y Desarrollo Económico ). It would cut corporate income tax gradually from 27% to 23%, move back towards a fully integrated system – so owners could credit the full corporate tax against their final tax – and remove tax on certain capital gains from financial investments. Smaller companies would keep the reduced transitional rate already in force under separate legislation. The bill is at an early stage and may change or be rejected. Investment permits and the Environment Reducing “ permisología ” – the delay and complex - ity of obtaining permits – is a central policy theme. 9. Looking Forward 9.1 Upcoming Legal Reforms
The Framework Law on Sectoral Authorisations ( Ley Marco de Autorizaciones Sectoriales ), enacted in 2025, is expected to shorten authorisation timelines (by some estimates between 30% and 70%), and fur - ther measures are under discussion to streamline the Environmental Impact Assessment System ( Sistema de Evaluación de Impacto Ambiental , SEIA), speed up sectoral permits and maritime concessions, and com - pensate investors where an approval is later revoked by the courts. A reform of the Environment Superin - tendence is also progressing. Together these aim to unlock a large pipeline of stalled mining, energy and Two reforms already in force continue to raise the cost of employment. The 2025 pension reform (Law No. 21,735) adds a new employer contribution that rises in steps to 7% of pay, on top of the existing 1.5% dis - ability and survivors’ insurance, reaching its full rate around 2033. Separately, the working week is being cut in stages from 45 to 40 hours through 2028. Both should be built into workforce budgeting. Data Protection Chile’s new Personal Data Protection Law (Law No. 21,719) takes full effect on 1 December 2026. Closely modelled on the EU’s GDPR, it creates an independent Data Protection Agency, strengthens individual rights, requires breach notification and introduces fines of up to roughly 4% of annual turnover. Any business handling employee, customer or supplier data in Chile should begin compliance work well before that date. Other Developments and Outlook green-hydrogen projects. Employment and Pensions Investors should also watch the expanding criminal liability of companies, financial-technology (fintech) regulation and various sector-specific rules. Given the tight fiscal position and a divided Congress, the timing and final shape of these reforms remain uncertain, so up-to-date local advice is advisable before any mate - rial investment.
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