Overview
- Chief of Cabinet Manuel Adorni said the government will present a tax chapter that scraps many internal taxes to lower prices and boost activity.
- Draft texts cut corporate income tax scales for fiscal years starting January 1, 2026, trimming the 30% tier to 27% and the 35% tier to 31.5%.
- The reform would repeal cedular taxes on financial income and on transfers of real estate, with officials also signaling measures to encourage housing rentals and property sales.
- A new Regime to Incentivize Medium‑Sized Investments (RIMI) would grant accelerated amortization and VAT credit refunds, with minimum project thresholds ranging from US$150,000 to US$30 million.
- Draft provisions also set a 10.5% VAT rate for electricity used in agricultural irrigation, while analysts say the package would increase tax expenditures beyond the roughly 3.5% of GDP in the 2026 draft budget and the final text has not been confirmed.