Law No. 20,956: "Law To Boost Productivity"

On October 26^th, 2016, Law No. 20,950, otherwise known as the "Law to Boost Productivity" (the "Law"), was published in the Official Gazette, introducing various modifications to different laws and regulations in order to enhance the country's productivity through the expansion of the financial system and the promotion of the exportation of services.

Main measures for the expansion of the financial system:

• Several legal provisions of Law Decree No. 824 (Income Tax Law – "ITL") are modified, eliminating a number of operative obstacles with the purpose of facilitating the settlement of foreign custodians in Chile and promoting the participation of foreign investors in the financial market. To these ends:
  • The methodology for calculating interest accrued by publicly offered debt instruments referred to in Article 104 ("Article 104 Instruments") is modified in order to adjust their computation method to the particular terms of each instrument's issuance;