Chile's megareform tax invariability faces opposition and constitutional challenge

Chile's National Reconstruction Law, dubbed the "megarreforma," includes a tax‑invariability regime that would lock investors into fixed tax terms for up to 25 years. Opposition parties – including the PPD, PC, PS and Frente Amplio – denounced the government's agreement that reduced the lock‑in periods to 10 years for projects up to US$100 m, 15 years for projects up to US$350 m and 20 years for larger investments, and added a 1.5 % surcharge on corporate tax.

Senators said the changes jeopardise fiscal stability and favour large firms, prompting a coordinated move to bring the disputed provisions before the Constitutional Court. The opposition announced it will file constitutional challenges on several articles relating to tax invariability and environmental impact assessments. Meanwhile, the Senate scheduled a full vote on the reconstruction bill for 15 July, after a series of committee debates that saw some opposition senators walk out in protest over a new indemnification clause for investors whose environmental approvals are revoked.