President Piñera highlights benefits of tax modernization for small and medium enterprises
The President visited a bakery in the municipality of Independencia, where he outlined how small and medium enterprises will benefit from the government program. The initiative lowers taxes and simplifies the tax process for such businesses.
On Monday, President Sebastián Piñera highlighted the benefits of the administration’s tax modernization bill for small and medium enterprises.
“This project is focused on the small and medium enterprises and the middle class. It seeks to simplify bureaucracy and make life easier for small business owners and introduces significant tax relief”, the President said after touring a bakery in Independencia with Finance Minister Felipe Larraín and Economy Minister José Ramón Valente.
The tax modernization bill will enable over 150,000 small and medium enterprises to reduce their tax rate from 27% to 25% thanks to the new “SME Clause”. In addition, 700,000 small and medium enterprises that do not currently have access to this system will have the opportunity to do so.
“This is a pro-growth and pro-employment bill that is very much necessary for a Chile that is moving faster and more decidedly towards the future”, the President added. The initiative also involves simplifying the accounting system for this type of businesses.
President Piñera praised the initiatives included in the bill and called on legislators to understand its importance for Chileans’ quality of life. “Chile needs this urgently in order to make this great leap towards development and towards tackling poverty”, the President concluded.