Economic Outlook and Market Value Requirements: New Challenges for Businesses
Chile’s economy continues to experience moderate growth. Following expansions of 2.6% in 2024 and 2.5% in 2025, growth projections for 2026 range between 1.0% and 1.75%. At the same time, annual inflation stands at 4.3%, the Monetary Policy Rate (MPR) remains at 4.5%, and high unemployment rate, reflecting an environment that requires greater caution in corporate decision-making.
In addition, external factors such as the 12.5% tariff imposed by the United States on Chilean exports are increasing pressure on profit margins and business planning. Conversely, elevated copper prices continue to support economic activity and investment prospects.
Alongside these economic conditions, Law No. 21,713 and Circular No. 23 issued by the Chilean Internal Revenue Service (SII) have strengthened the tax authority’s powers regarding the review of market value based transactions. As a result, transactions such as asset sales and acquisitions, shareholder incorporations, corporate reorganizations, capital contributions, and related-party transactions must be supported by sound economic rationale and sufficient evidence to substantiate the values applied.
The combination of a more challenging economic environment and stricter regulatory requirements is directly influencing corporate decision-making and business projections. It is no longer sufficient to assess a transaction solely on the basis of its expected profitability; companies must also demonstrate that the transaction is economically reasonable and adequately documented.
In this context, organizations should prioritize robust valuation practices, strengthen supporting documentation, and integrate financial, strategic, and tax considerations into their decision making processes. A well structured planning approach can help mitigate risks, improve the quality of business decisions, and enable companies to navigate the current environment with greater confidence and certainty.
Jessica Carvajal from Auren Mexico
