The National Reconstruction and Economic and Social Development Law was published in the Official Gazette on 19 October 2026. This comprehensive legislation introduces targeted tax incentives to stimulate investment in regions impacted by recent natural disasters, including accelerated depreciation for reconstruction assets, temporary VAT credits for construction materials, and expanded deductions for charitable donations. Additionally, the law enhances the Senior Citizen Benefit (BAM), increasing property tax rebates for qualifying residents over 65. The SII will issue implementing circulars within 60 days to detail application procedures and compliance requirements.
Key Takeaways
- Accelerated Depreciation: Companies investing in reconstruction of productive assets in declared zones may depreciate them over 50% of normal useful life, improving cash flow.
- VAT Credit for Construction Materials: A temporary 19% VAT credit is available for purchases of eligible materials used directly in rebuilding residential and commercial properties.
- Enhanced Senior Property Tax Relief: The BAM rebate threshold is raised, extending full exemption to properties with fiscal valuation up to 3,500 UF, benefiting an estimated 40,000 additional seniors.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement