This content is from: Local Insights


Law 19,589, enacted on November 14 1998, reformed Decree Law 3,475 of 1980 which regulates the stamp tax applicable to documents containing loans and other credit transactions, including foreign loans granted by foreign entities to Chilean companies and individuals.

The 1980 law imposed a stamp tax duty at a rate of 0.1% of the principal per month. The duty was paid between the date of disbursement and the date of maturity, with a maximum of 1.2% of the principal amount, applicable on bills of exchange, promissory notes, letters of credit to finance imports and on any other document containing a loan for money borrowed or any other credit transaction. For documents issued at sight, ie without a defined maturity date, the stamp tax rate is 0.5% of the principal amount.

Under the new law, enforceable from January 1 2002, the monthly stamp tax rate will be increased to 0.134%, with a maximum rate of 1.608%, and the stamp tax rate for documents issued at sight will be 0.67%. Francisco Illanes and Rodrigo Sepúlveda

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