OECD Home › Tax › By Country › Chile
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The tax burden in Chile declined by 1.2 percentage points from 21.4% to 20.2%, the second largest fall amongst member countries in 2013. The corresponding figure for the OECD average was an increase of 0.4 percentage points from 33.7% to 34.1%. The Chilean standard VAT is 19%, which is very close to the OECD average. The average VAT/GST rate in the OECD was 19.1% on 1 January 2014.
Tax revenues in Latin American countries continue to rise but are lower as a proportion of their national incomes than in most OECD countries. Revenue Statistics in Latin America 2012 shows that Argentina and Brazil have the highest tax revenue to GDP ratio, while Guatemala and Dominican Republic stand at the lower end.
Chile is the eighth country in the region to sign this Convention, which shows that we have made progress, but there is still much ground to cover. We hope that this signing will attract the attention of other Latin American countries that want to be included in this important multilateral co-operation instrument.
OECD Secretary-General Angel Gurría welcomed today Chile’s recent steps to strengthen international tax co-operation.
Tax revenues in Latin American countries are lower as a proportion of their national incomes than in most OECD countries, but are rising slowly. Revenue Statistics in Latin America shows that the average tax revenue to GDP ratio in the 15 Latin American countries covered by the report increased from 19% in 2009 to 19.4% in 2010, after falling from a high point of 19.7% in 2008.
This report summarises the legal and regulatory framework for transparency and exchange of information for tax purposes in Chile.
The Global Forum on Transparency and Exchange of Information for Tax Purposes has just completed peer reviews of 11 jurisdictions. This brings to 70 the number of peer review reports completed since March 2010.
Chile has made good progress in improving housing conditions, but still around 10% of the population lives in either overcrowded houses, or of inadequate quality and/or with poor access to basic services.
OECD countries acknowledge that taxes must play a role in the process of fiscal consolidation as they battle unprecedented budget deficits. In 2010, the majority of OECD governments have stabilised their tax to GDP, with the average ratio moving up slightly from 33.8% in 2009 to 33.9% in 2010.
This chapter suggests ways to further bolster the economy’s resilience against shocks by sharpening the fiscal rule in copper price booms, while making room to relax it more in severe downturns.