The incorporation of tax sustainability into Chilean legislation

The OECD, the UN, and the EU have incorporated the concept of Tax Sustainability into tax regulations as a mechanism for achieving sustainable development goals through collaboration between the business world and tax authorities.

In 2024, Chile incorporated the concept of Tax Sustainability into its domestic legislation, in order to strengthen the tax authority in the fight against tax evasion, avoidance, informality, and organized crime, as well as to promote proactive and responsible taxpayer behavior in tax compliance, and to modernize the tax system, aligning it with collaboration and trust.

Within the framework of the law, companies are able to prove that they comply with the guidelines promoting the principle of tax sustainability by opting to be certified through a process that involves public recognition of responsible tax compliance and inclusion in the Tax Transparency Registry maintained by the Chilean tax authority. This certification is optional, and regulatory requirements have been established so that private companies can apply to become entities that can grant this certification to taxpayers.

Javier Molina Marín, Tax lawyer from Auren chile