The Tax Reform (Law 20.780 from 2014) and its further adjustments (Law 20.899 from 2016), with regard to Taxes on sales and services, has focused its efforts in modifying the taxable event in the sale of tangible property immovables eliminating the requirement that these must be sold by a construction company, with the consequent effect on the definition of the taxable event (basic and specials), subject, accrual and determining the taxable income. Regarding this last element of the tax obligation, the taxable income should have been added to the sale of properties used by the operations done by regular sellers, adding letter g to the article 16 from DL 825 of 1974. Another important modification was the incorporation of interest rate reductiont to the taxable income for lease contracts with the option to buy for sellers. In relation to taxable income in the sale of new tangible property immovables, there were no modifications, keeping the established in the second and subsequent subparagraphs in article 17, without prejudice, of course, of the changes to the special credit for construction companies (CEEC for its acronym in Spanish) contained in article Executive Order 910/1975.
Keywords:
VAT, Tax Credit, Taxable base, Sale of immovables, Tax reform
Escalona Caba, E. (2016). Taxable income liable to VAT on the sale of immovables: effects of the tax reform. Revista De Estudios Tributarios, (16), pág. 117–138. Retrieved from https://revistaurbanismo.uchile.cl/index.php/RET/article/view/44618
