The Foreign Investment Committee (CIEChile) held a well-attended breakfast briefing this week on the details of the newFramework Law for Foreign Investment. The event, which was attended by over 100 representatives from embassies and chambers of commerce, focused on presentations by Liliana Macchiavello, the institution’s executive vice-president, Rodrigo Krell, CIEChile’s chief economist and Néstor Torrealba. a lawyer in the international norm’s department of the National Tax Service (SII).
At the event, Liliana Macchiavello underlined the change represented by the law that President Michelle Bachelet promulgated this year. “Chile will have, for the first time, a strategy to attract foreign investment that will allow us to move from a passive policy of receiving foreign capital to a proactive policy of attracting the investment that the country needs”, said the CIEChile authority.
Furthermore, Macchiavello emphasized that the law creates a new Investment Promotion Agency that will continue with some of the functions undertaken today by CIEChile, such as the administration of contracts signed under the DL 600 statute. In this regard, she provided assurances that “Chile will wholly respect contracts signed before the repeal of the norm”, and recalled that foreign investment contracts will no longer be signed as from 1 January 2016. To meet the prior administrative processes, CIEChile has established that it will receive DL 600 requests until 15 December of this year.
New Investment Promotion Agency
CIEChile chief economist, Rodrigo Krell, referred to the work of the new Investment Promotion Agency in his presentation. According to Krell, the new institution will have technical capabilities, powers and resources “to provide services in all stages of the cycle of the foreign investor. That is, from the first contact until the stage after the installation and development of the business, which is when reinvestment in the country is considered”. For this, the agency will focus its services on three areas: Investment Promotion, which will involve first contacts and dissemination of general information both in Chile and abroad; Enabling Investment, which includes the preparation of specific information and customized services in the country; and Post Establishment Services, aimed at improving investors’ experience in Chile and strengthening reinvestment.
Meanwhile, the lawyer from the National Tax Service’s international norm’s department, Néstor Torrealba, talked about the possibilities offered by agreements to avoid double taxation and the particular aspects that foreign investors need to bear in mind today, regarding tax, when doing business in the country.
Fuente: CIE Chile