arica and parinacota

Transcription

ARICA AND
PARINACOTA
BENEFITS AND
OPORTUNITIES
FOR INVESTMENT
Arica’s San Marcos Church, built in France on the Gustavo Eiffel and Co. workshops,
opened in July, 1876.
Flamingo, one of the most characteristic species in Chungará Lake.
Made by:
CORDAP
Photography:
Vito Alberti Villalobos
Digital edition:
Luis Cadima Rojas
INVEst in ARICA and PARINACOTA
ARICA AND PARINACOTA’S DEVELOPMENT CORPORATION
The Arica and Parinacota Development Corporation is non-profit institution, created by
the N° 19.669 law (Arica II law), with the main objective of encouraging the progress of the
provinces of Arica and Parinacota, serve as a consultative organ in investment decisions
and public policies related to such provinces and assess the progress of measures to
promote and develop that are decreed or have been decreed for them. The corporation
acts as a coordination entity among private and public sectors and civil society.
The committee is formed by the most representative enterprise unions and social
associations of the region. Intendants, governors and mayors are also part of the
corporation. Currently, the directory is presided over by Ms. Edward Gallardo Malebrán,
president of the Association of Industrial Workers of Arica.
ARICA AND PARINACOTA REGIONAL GOVERNMENT
Mission:
Leading the region towards an integrated, sustainable and equitable development, to
contribute to the welfare of its people, through the formulation and implementation of
policies and planning tools, the coordinated management of resources and public investment
and coordination with the private sector.
Strategic Vision:
The region has a series of aspirations that shape strategic vision and long-term objective
image. This vision and strategic image involves the search of the following claims:
- Be a region that offers to their residents a high quality of life and the opportunity of growth
and development.
- Be a national and international benchmark region of tourism, heritage and culture identity.
- Become an efficient and effective platform to make a bridge between South America and
the Asia Pacific.
- Position itself as a region with a high-tech agriculture and high productivity.
- Develop a competitive industrial and commercial park in the context of South Central
Andean Region.
- Consolidate itself as a reference region in high-quality superior education in undergraduate
and graduate teaching and applied research.
INVEst in ARICA and PARINACOTA
PROCHILE
ProChile is an institution dependant on the Ministry of Foreign Affairs, and its role is to promote
the exportation of goods and services. It also helps to encourage foreign investment in Chile
and its tourism. ProChile has a network of over 50 commercial offices around the world and
15 regional offices across the country. Specialized work teams contribute to the positioning
of Chilean attributes in the international markets, supporting the exporting companies with
high quality information and diverse instruments in their management abroad.
Free Trade Zone of Iquique (ZOFRI)
ZOFRI: THE BEST COMMERCIAL AND INDUSTRIAL PARTNER FOR AMERICA AND THE WORLD.
The Free Trade Zone of Iquique (ZOFRI) was created in 1975, and since 1990 it has been
administered by Zofri S.A. Within the context that originates its creation, are found the
following reasons:
- Promote the development of the most distant zones of the country
- Strengthen the sovereignty in the geopolitical context with neighboring countries
- Contribute with economic growth and incentives for employers, due to the high tariff rates
of those years
Currently, Zofri S.A it’s recognized as a logistics and commerce system of international
excellence. Zofri’s connectivity with the Bioceanic Corridor highlight the following advantages:
3,300 kilometers (about 2,000 miles) that will connect Chile-Bolivia-Brazil; Puerto de Santos
(Brazil) connection with ports from Iquique and Arica. New markets in Bolivia, Brazil, Paraguay
and Peru (86 million people). Access to main urban centers: Santa Cruz, Campo Grande,
Corumba and Cuiaba.
Currently, Zofri possesses 4 business unities:
- Industrial Park, Arica
- Shopping Center, Iquique
- Logistics Center, Iquique
- Wholesale Business Center, Iquique
Sunset in Chinchorro Beach
PRESENTATION
Arica and Parinacota region is located at
one, established a list of tax advantages
the northern end of the Chilean territory. It
until year 2025 promoting investment and
is a new region, with a regional independent
development of the economic activities of
government since 2008. It possesses
the region.
cultural,
geopolitical
In June, 2014, Chile’s President, Michelle
characteristics that differentiate it from
Bachelet, announced the Special Plan
other regions.
of Strategic Development for Arica and
Due to its history and geographic location,
Parinacota region, which involves the
its development - for many years -
investment of billions of dollars in public
followed different rhythms that national
investment in our region over the next six
one,
years.
economic
despite
their
and
opportunities
and
resources. In an economically and politically
The Arica and Parinacota Development
centralized country as Chile, the region was
Corporation,
along
not “visible” for the Central Zone.
Government
and
With the creation of the Arica and
concessionaire for the administration of
Parinacota
region,
ZOFRI
Regional
S.A
as
phenomenon
the Industrial Free Trade Zone of Arica and
to the existence of a
the Regional Directorate of PROCHILE have
regional government and council, with
formed a Regional Committee of Promotion
its own public budget to manage, plus an
of Investments, and its first task is to
organized private sector and united around
spread the potentialities and benefits of
the economic development axis, orienting
the region, regarding its resources, public
the future of the region.
investments that lie ahead as well as the
The law N° 19,420, dictated on October 12,
tax legislation that favors it.
1995 (known as Arica Law I) perfected and
This document is a synthesis of the
deepened by Law N°. 19,669 dictated on
potentialities
April 20, 2000 (known as Arica Law II) and
Regional Committee of Promotion of
the law N°20,655 about distant zones of
Investments has decided to disseminate
the country, dictated on February 1, 2013,
and promote.
started changing:
this
with
that perfected and deepened the previous
and
benefits
that
the
Partial view of the port, from the “ El Morro”.
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BENEFITS AND OPORTUNITIES FOR INVESTMENT
INDEX
Chapter I Potentialities and advantages of the region
1.1 1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
1.10
Territory and Location
Air Connectivity
Road Connectivity
Railway Connectivity
Maritime Connectivity
Universities and Institutes
of Professional Training
Hotel Capacity and Casinos
1.8Industrial Neighborhoods of Arica
National Land & Property
Regional Economy
Chapter II Investment opportunities in the region
2.1Agriculture
2.2Tourism
2.3Logistics
2.4 Non-conventional Renewable Energies
2.5Aquaculture
2.6 Productive Linkages
2.7 Mining Industry Services
Chapter III Special Plan of Strategic Development
3.1
3.2
3.3
3.4
Plan Structure
Strategic node “Every Chile is Chile”
Strategic node “Arica and Parinacota
joins the development of Chile”
Other initiatives included in the Special Plan
Chapter IV Potentialities and tax advantages of the region
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9 4.10
Tax Credit to Regional Investment
Industrial Free Trade Zone
Workforce Hiring Bonuses
Investment Bonuses: Priming Fund
and Development of Distant Zones
Simplified Exports System
Export Centers
Establishment of gambling casinos
Extension Free Trade Zone
Special Taxes for Residents
Registration Certificate
CAPÍTULO V REQUISITOS Y TRAMITACIÓN DE LOS BENEFICIOS
5.1
5.2
5.3
5.4
5.5
5.6
Investment Tax Credit
Arica Industrial Free Trade Zone
Workforce Hiring Bonuses
Bonus for investment
in extreme zones
Simplified Exports System
Export Centers
Chapter VI Comparative Analysis of Results
5.1
5.2
5.3
5.4
5.5
Comparative table
Practical Example 1
Practical Example 2
Practical Example 3
Practical Example 4
APPENDIX 1
Map of Arica and its Industrial Areas
APPENDIX 2
Law report N° 20,655, establishes special incentives for the most
distant zones of the country, regarding Arica and Parinacota region.
by:
Raúl Castro Letelier, Lawyer.
APPENDIX 3
Bibliographic references
Pucara of Copaquilla National Monument.
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CHAPTER I POTENTIALITIES AND ADVANTAGES OF THE REGION
1.1 TERRITORY AND LOCATION
Arica and Parinacota is the northernmost region of Chile, it’s the only region that borders two countries; at North with Peru, at East with Bolivia and at South with Tarapacá.
Due to its geographical location this region has the responsibility to realize significant
“The region as a whole has great potential for
development in technical agriculture, logistics
services and tourism. These sectors have been
defined as the axis of regional development.”
agreements with neighboring countries, such as the Peace and Friendship Treaty in force,
signed with Bolivia in 1904 and the Treaty of Lima, signed with Peru in 1929. Covers an
area of 16,873.3 km2 and the INE (National Statistics Institute) held a screening of the population of 239,126 to 2015 and of 258,778 to 2020. The region it’s administratively divided
into two provinces: Arica and Parinacota.
Arica’s province occupies the coastline and desert plateau, which is crossed by the fertile
agricultural valleys of Lluta, Azapa, Chaca and Camarones. The province it’s subdivided
into communes of Arica and Camarones, Arica commune being the capital of the region,
which concentrates 98.7% of the population of the region.
Parinacota’s province occupies the Andean foothills and the high plateau territory. The
Andean foothills has agricultural and touristic potential, with colonial towns that retain
their churches that constitute the “Ruta de las Misiones” (The Mission Route). The high
plateau is a virgin area at 4,000 meters above sea level, with unique worldwide landscapes
and auquenido grazing agriculture. It is subdivided into the communes General Lagos and
Putre.
The region as a whole has great potential for development in technical agriculture, logistics services and tourism. These sectors have been defined as the axis of regional development. There are also other emerging sectors such as photovoltaics and mining services
taking advantage of the geographical position facing the region.
The strategic location of the region allows access
to a potential market of 9 millions of people, only
considering the cities at no more than 1,000 km
round, as shown in the figure to the left.
Vizcacha. Their hunting is banned
throughout Chile and is listed as an endangered species.
15
1.2 AIR CONNECTIVITY
The city has an international airport, called “Chacalluta Airport”, located at 18.5 kilometers
More information:
north of the city. The estimated travel time from the town to the airport is 20 minutes;
www.lan.com and
this terminal registers 7 national flights each day destined to Santiago. Most of them are
www.skyairline.cl
direct, although some with stopover in Iquique and/or Antofagasta. Flights are carried out
www.peruvian.pe
by two airlines: LAN and SKY AIRLINE.
Moreover, Lan Peru offers three daily flights to Lima – Peru from Tacna airport, 40 km
away from Arica; Peruvian also offers daily flights to Lima and Arequipa.
1.3 ROAD CONNECTIVITY
Arica has great road connectivity. By the eastern side of the city crosses the 5 North Road
(Pan-american Highway), which connects the South American countries of the Pacific. At
the north of Lluta river, arises from the 5 North Road the 11-CH highway, which connects
Arica with Bolivia.
City
Population
Tacna Perú (1)
Ilo Perú (2)
Arequipa Perú (1)
Alto Hospicio (2)
Iquique ( 2)
Antofagasta (2)
Calama (2)
El Alto, Bolivia (3)
La Paz, Bolivia (3)
Cochabamba, Bolivia (3)
Santa Cruz, Bolivia (3)
312.311
70.033
958.351
112.142
198.123
378.244
176.459
848.884
764.617
630.587
1.453.540
Distance from Arica
Orientation
Route
56 Kilometers
209 Kilometers
405 Kilometers
300 Kilometers
310 Kilometers
717 Kilometers
586 Kilometers
500 Kilometers
510 Kilometers
671 Kilometers
1.177 Kilometers
North
North
North
South
South
South
South
East
East
East
East
Pan-american
Pan-american
Pan-american
5 North Road
5 North Road
5 North Road
5 North Road
11 - CH
11- CH
11 - CH
11 - CH
Traffic is not an issue in Arica, giving the fact that it has four double road avenues that
cross the city from north to south:
• Capitán Avalos Avenue
• Alejandro Azola Avenue
• Santa Maria Avenue
• Luis Beretta Porcel Avenue
From east to west there are three double road avenues:
• Renato Rocca Avenue
• Diego Portales Avenue, that continues eastward along the Azapa Road
• 21 de Mayo extension / Senador Valente Rossi
The number of avenues with high vehicular capacity allows fast transportation from any
point of the city.
(1) Population projection 2014 INEI Perú.
(2) Population projection 2015 INE Chile
(3) Population census 2012 Bolivia
16
ARICA and PARINACOTA
1.4 RAILWAY CONNECTIVITY
Arica is connected by railway with La Paz (Bolivia). The railway has a cargo transportation
capacity of 240,000 tons per year, and 209 kilometers of the whole track are located in the
Chilean side. This railway was built as part of the Treaty of Peace and Friendship signed in
1904 between Bolivia and Chile.
There is also a railway that connects Arica with Tacna. This railway belongs to the Peruvian government and it is used only for passenger transportation, although it is less important compared to road transportation. It has great touristic potential, so the Peruvian
government has an investment project to enhance it.
“According to the agreement,
the Bolivian cargo does
not pay storage the first365 days
since it was unloaded. Also,
Bolivia does not pay for the first
60 days of storage
of a cargo that will be loaded.”
1.5 MARITIME CONNECTIVITY
The Arica and Parinacota region has a port located in the center of the city. The port has a
transference capacity of 3,956,000 tons and it is composed by 5 sites. It has a paved surface of 185,445 m2, and 27,048 km2 of them are built (storehouses and other buildings).
Movement statistics are:
Index
2010
2011
2012
2013
2014
Merchant ships
295
352
241
408
385
Gross tonnage
2.131.367
2.659.060
2.590.830
3.023.316
3.074.883
Source: CORDAP
using EPA data base.
75% of the tonnage moved through the port corresponds to transit cargo from Bolivia,
country with whom there is a treaty (“Peace and Friendship Treaty” between Bolivia and
Chile) since 1904, which determined the land boundary between the two countries, and by
which Chile accorded to facilitate the free traffic of goods through the Arica port. According
to the agreement, the Bolivian cargo does not pay storage the first 365 days since it was
unloaded. Also, Bolivia does not pay for the first 60 days of storage of a cargo that will be
loaded.
More information:
www.puertoarica.cl
www.tpa.cl
17
1.6 UNIVERSITIES AND INSTITUTES OF PROFESSIONAL TRAINING
Arica has several universities and technical training centers, which allow the existence of
qualified personnel available and also offers the possibility of training for workers. The
universities have continuation of studies and evening studies programs.
Source: CORDAP
on Ministry of
education database.
Institution
Type
Website
Universidad de Tarapacá
Universidad Arturo Prat
Universidad Santo Tomás
Universidad Tecnológica INACAP
CFT Santo Tomás
CFT INACAP
CFT Tarapacá
Public University
Public University
Private University
Private University
Technical Training Institute
www.uta.cl
www.unap.cl
www.santotomas.cl
www.inacap.cl
www.santotomas.cl
www.inacap.cl
www.cfttarapaca.cl
1.7 HOTEL CAPACITY AND CASINOS
Arica has 50 accommodation premises for tourists and people that visit the region for
work and businesses. Among these, we find hotels, houses with vacancy for tourists and
hostels. There are a total of 1,430 rooms with a total of 2,918 available beds (Source: INE).
Putre, capital of the province of Parinacota, located at 135 kilometers to the east of Arica
by 11-CH road at 3,500 meters above sea level, has 3 hotels and several hostels.
The city also has a casino that belongs to the local government, and there is a project to
build a new hotel-casino complex, the “Arica City Center”.
More information:
http://www.visitarica.cl
http://www.sernatur.cl/buscador-de-servicios
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1.8 INDUSTRIAL NEIGHBOURHOODS OF ARICA
The city planning scheme of 2009 indicates that there are 3 industrial zones in Arica:
ZI1, INDUSTRIAL ZONE 1: Industrial sector destined for fishing and complementary activities along with accommodation activity. It is located at the south coastal boarder 5
kilometers away from the city.
ZI2, INDUSTRIAL ZONE 2: Industrial sector located at the north of the Lluta River, 10 kilometers from the city. It is formed by Puerta de America and Zofri-Chacalluta and it is
destined to harmless and annoying industry, complementary activities and infrastructure
of all kinds.
ZI3, INDUSTRIAL ZONE 3: Industrial area destined for harmless industry, except for health,
education, culture and recreation equipments. It is located at the north of the city, among
Santa Maria Avenue at east, Alejandro Azola Avenue at west, Ecuator Avenue at south and
Los Artesanos Avenue at north.
Appendix 1 shows the map of Arica with the location of its industrial zones.
Today is under study a new regulatory plan that suits the current needs of the region, this
project has 2016 as an ending date, also in the Arica and Parinacota Special Plan of Strategic Development (Chapter III) allocates resources for the transfer of Industrial area 3 to
northern sector of the region alongside the Chacalluta Industrial Park.
More information:
http://www.dom.muniarica.cl/pag.php?id=28&tipo=html
1.9 NATIONAL LAND & PROPERTY
Those interested in the acquisition of land belonging to National Assets, should refer to
the availability of the land in the Directorate of National Property of the region and shall
request the bidding of the land considering the following aspects:
19
Participants
For the acquisition of tax property, all the natural or legal and national or foreign interested
people may participate in the tender; they should fulfill the requirements of the 1977, DL
1939.
Presentation
Tenders must be submitted using the “FORM OF OFFERS PRESENTATION FOR PUBLIC
TENDER OF TAX PROPERTY TO THE BEST ECONOMIC OFFER”, which must be filled
completely by machine, computer or by hand in legible print letter, in Spanish, clearly and
in a sealed envelope, which on the outside will be directed to Arica and Parinacota National
Assets Seremi.
Supply Bid Security
To ensure the seriousness of the offer, this must be accompanied by a Banking Ballot of
irrevocable guarantee by the interested partners, which should be payable at 30 days or
sight, issued by a Chilean or with representation in Chile bank or financial institution, on
behalf of the Ministry of National Assets, for the equivalent of 5% of the minimum value set
by the Special Committee on Regional Disposals, expressed in UF.
Receipt and opening of tenders
Once finished the application deadline it will proceed to open the bids to the Arica and
Parinacota Ministerial Regional Secretary of National Assets, or who will succeed to, and
the people designed by this Service. The general content of each bid will be read aloud
by the official designated for this purpose, who will act as Minister of Faith. Everything
will be record in the Minutes of Opening and Receipt of Bids, which shall be signed by the
Ministerial Regional Secretary of National Assets and the Minister of Faith.
Adjudication
Every bid property is awarded to the bidders that meet all the requirements of the bases
and present the best deal for price.
Price and payment
The purchase price will be the one corresponding to the financial offer made by the bidder
awarded, which may be paid in cash, in pesos, according to the Unidad de Fomento (UF)
equivalency the day of the deed’s signing.
The price payment will be made by deposit in the Arica and Parinacota Ministerial Regional
Secretary of National Assets current account, ready for this purpose..
Subscription of
the deed of sale
The preparation of the Minutes of the deed of sale will be written by the lawyer of the Arica
and Parinacota Ministerial Regional Secretary of National Assets. The deed of sale must be
signed by the parties within the time limit set by the decree that provides the adjudication
and sale, which will run since their notification by registered letter to the tender. This
notification shall be made by the Ministerial Regional Secretary of National Assets of Arica
and Parinacota by registered letter and shall be practiced since the third business day
following the date of receipt in the corresponding Post Office.
Treasury Responsibility
The Treasury is not responsible for expropriations affecting the property, nor of occupations,
the responsibility of its evacuation lies into the successful tender, who, by the fact of
submitting a bid, renounces all claims or lawsuits against the State by these causes.
Source: CORDAP on National Property database.
20
Regarding to the allocation of land for 2014 it highlights the following:
• Serviu transfer of 49 hectares for the property sector, which are distributed in 6 hectares
for the construction of a treatment plant of Aguas del Altiplano, 33 hectares for the
development of new housing, 10 hectares for facilities projects (schools, parks, markets and
others). These 49 hectares are located in the area called Alto de Arica, which is southeast of
the city, behind the Morro.
• Tendering of land located next to Route 5, to the Chacalluta airport, ZOFRI to the industrial
zone, less than 15 km from the city of Arica (Lots H9, H11,H12,H13,H14).
• Concerning to non-conventional renewable energy projects, in the area called Pampa
Land Tax for NCRE projects
LAND
SOLAR PROJECT
Pampa dos Cruces
• SKY Solar Company
Onerous use Concession of 127.21 ha for the generation of 33 MV through Decree 1099.
• Mainstream Spa Company
Onerous use Concession application for public land of 440.5 ha that considers generate
100MW (record 574 764).
• E-CL
Onerous use Concession application for public land of 220 ha that considers generate
59MW.
• Solventus Chile S.A. Company
Applications for the development of power generation projects with an area of 104 ha and
considers generate 30 MV.
• Desarrollo fotovoltaico de Chile S.A
Solar park Wilka project, with onerous use concession of 160 ha to generate 98MV.
Pampa Camarones
• Acciona Energía Chile S.A. Company
Cuesta el Águila
• Mainstream Spa Company
Application for the development of electric generation projects with an area of 114 ha and
considers generate 30 MV.
Onerous use Concession application for public land of 262 ha that considers generate
70MW capacity (record 574 768).
• E-CL and Quiborax S.A.
Inauguración 4 julio 2013 Primera planta solar Fotovoltaica con potencia instalada de 2MW.
Alto Ramírez
• Sky Solar Company
Others
• Elecnor Chile
Pampa María José Park Project, onerous use concession of 360 ha with 88 MV generation.
Onerous use Concession application for public land to build a Thermosolar Energy plant.
21
Camarones, in the commune of Camarones, the Regional Directorate of National Assets
plans to bid an area of about 600 ha. in 2015 designated to the development of projects
of photovoltaic power generation. This tender will be promoted on the website of this
Service.
More information:
http://www.bienesnacionales.cl
1.10 REGIONAL ECONOMY
The Arica and Parinacota region possesses an emerging regional economy, that after
years of postponement, is currently showing positive figures, demonstrating a clear improvement of the regional economy in recent years, due to public investment of public
policies and the development of neighboring economies, that have made Arica a region
of services.
Sources:
1 Central Bank of Chile
2 National Institute of Statistics,
3 Internal Revenue Services,
4 Arica’s Local Port Company,
5 AFP superintendence,
6 Regional Government
of Arica and Parinacota
*FNDR: National Development Fund
(destined for investment administered by a
regional council)
**PROPIR: Public Regional Investment
Program (amount of money invested in
the region by the government).
Indicator
Period or date
Value
Regional GDP (1)
INACER 2003 (2)
Workforce (2)
Employment (2)
Unemployment (2)
Companies in the region (3)
Company-sales in the region (3)
Port movement (4)
Taxable salary average (5)
FNDR* (6)
PROPIR** (6)
2013
October-November 2014
November 2014-January 2015
2014
2014
2014
September 2014
2015
2014
CL$ 701.459 millions
140,5
77.344
72.918
5,7 %
14.207
UF 62.814
3.074.883 Ton.
CL$ 582.045
CL$ 27.780.012.000
CL$ 268.523.039.216
Law N°20,655 about distant zones: promulgated in February, 2013, gives a new impetus
to private investment in the region, which will consolidate the growth trend. The tax advantages of the regional investment, coming from this and other laws, are detailed on the
second part of this document.
Vista del Puerto y Morro de Arica
desde la playa Chinchorro.
24
Chapter II INVESTMENT OPORTUNITIES IN THE REGION
2.1 AGRICULTURE IN ARICA AND PARINACOTA REGION
Description
The Arica and Parinacota region is characterized by a privileged climate. The average temperature is 15° C minimum and 25°C maximum in the winter, and 20° and 30° respectively in the summer. This climate advantage allows farmers to develop their activities
throughout the year. The agriculture of the region is characterized by high-tech levels
using drip irrigation and greenhouses with anti-aphid nets, allowing a high production in
the valleys of Azapa and Lluta.
The Lluta Valley is a zone of cultivation and agricultural exploitation, mainly corn, onions
and garlic. On the other hand, the main products grown in the Azapa valley are olives,
tomatoes, peppers and green beans. Also highlights avocados, passion fruit, guava and
other tropical fruits. There are also the valleys of Chaca and Camarones, of emerging production, which will be strengthened with investments in reservoirs and Caritaya Umirpa.
In addition, it have been installed various seed companies, such as Pioneer, Maraseed and
Syngenta.
There are projects that give sustainability to agricultural development of the region, such
as the piping channel of the Azapa waterway and the water reservoirs of Livilcar and Chironta. Plus, 1,050 hectares were put out to tender in Pampa Concordia. These initiatives
will allow the expansion of the agricultural surface to 9,975 hectares.
Parinacota province has agricultural valleys in the Andean foothills, Belen, Socoroma, Chapiquilla, Lupica, Saxamar and Ticnamar, among others, and they offer products such as
oregano and quinoa; high demand products in international markets. It is important to
mention, that in the agriculture of Parinacota, due to its height (2,500 meters above sea
level), practically, there are no plagues, allowing the development of an organic agriculture.
Potential Market
The main market for local products is the national. Arica supplies the Central Zone of the
country during winter, when vegetables are scarce. Also, exportation of olives carried out
to Brazil and onions and garlic carried out to Mexico and USA.
Opportunities
• To supply the Central Zone demand during winter season
• High efficiency agriculture
• Investment projects that will allow an improvement in the water use.
Other relevant information
• Parcels of land were awarded for the Pampa Concordia project in 2013, with a total
25
area of 1,050 ha, based on a long-term onerous concession. International seeds and vegetable producers - like tomatoes, peppers, lettuce, among others - initiatives are now
underway in these fields.
• The region water plan’s priority is to increase the availability of resources, with the
reservoirs and the piping of Azapa matrix. Thus, the plan contemplates an increase in irrigated areas, due to the treated water from the city, and to the water from the Concordia
aquifer.
Related webpages (public entities, local information)
• Ministry of Agriculture http://www.minagri.gob.cl/
• Agriculture and Livestock Development Institute http://www.indap.gob.cl/
• Agricultural and Livestock Service http://www.sag.gob.cl/
Arica and Parinacota have great
archaeological attractions, like Chinchorro
culture with mummies from
10,000 years B.C and their
geoglyphs and petroglyphs
located in Arica and Lluta valleys.
2.2 TOURISM IN ARICA AND PARINACOTA REGION
Description
The Arica and Parinacota region is located in the northern end of the country. Arica Commune is known as “The City of Eternal Spring”, for its friendly weather and great beaches
that can be enjoyed throughout the year. The region has a strong Andean influence, and
because of this, there are many touristic attractions, for people who want to learn about
regional culture. Arica shares a border with Peru and Bolivia, manifesting a multicultural
distinctive hallmark.
The region possesses great archaeological attractions for tourism, as the Chinchorro culture with mummies from 10,000 years B.C and geoglyphs and petroglyphs in Arica and
Lluta valleys. These valleys possess an incalculable beauty, where the arid desert is mixed
with the green of the fertile valleys. Parinacota features an imposing high plateau, where
you can find the Chungara lake, the highest in the world located at 4,517 meters above
sea level, and various foothill towns, such as Putre Socoroma, belen, Ticnamar, Codpa and
villages in the Andean high plateau, such as Parinacota, Caquena and Visviri. Their cultural
heritage is incomparable.
The main features of Arica are its pleasant climate and its sea with mild temperatures,
which allows practicing water sports throughout the year, such as surfing and body boarding.
Arica is located at a midpoint between Machu Pichu and San Pedro de Atacama, close to
Tiwanaku as well, a renowned archaeological site strategically located as a resting city for
travelers.
26
Potential Market
Due to the cultural heritage and privileged climate, the market aims to the tourism for
foreign and national travelers.
Opportunities
• A growing interest of tourists for tourism of special interest.
• Cruise season.
• Improvement in highland routes.
• Proximity with Tacna, a commercial touristic attraction located at the south of Peru, 65
kilometers away from Arica.
• Great road connectivity with Peru, Bolivia and the rest of the country.
• Great air connectivity with the rest of the country, besides Bolivia and Peru. There is
also, an indirect connection with Peru, through Tacna Airport.
• Sernatur performed, along with the Arturo Prat University, a conservation project with
eco-touristic value for the green turtles that are located in the coastal edge of the Chinchorro beach, in Puntilla, which will become an important touristic attraction.
• There is a project to restore 30 churches in the Andean foothills and highlands. The
churches were built between the centuries XVII and XVIII and the restoration is in charge
of the Fundacion Altiplano, called “Ruta de las Misiones”. The idea is to generate a touristic
route through the foothills villages, visiting the pre-Columbian churches of the area.
• The Andean Carnival “INTI CH’ AMAMPI”, gathers over 10,000 dancers who during three
days dance through the streets of the city with their colorful costumes.
• The international championship of surfing and body board, in the wave called “El Gringo” in the former island El Alacran, gathers the most important exponents of the world.
• It is important to remark the great touristic development of Putre, capital of the
province of Parinacota, where interesting touristic projects have been developed, being
even compared to San Pedro de Atacama.
• The Extreme Zones Special Plan has contemplated the improvement of the entire
Arica’s coastal and the restoration of the city buildings (Chapter III).
Related web pages (public entities and local information)
• National Service of Tourism : http://www.sernatur.cl/
• Visita Arica: http://www.visitarica.cl/
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2.3 LOGISTICS SERVICE IN ARICA AND PARINACOTA
Description
The region is characterized by having two frontiers, with Peru at the north and Bolivia at
northeast. Also, it has proximity with the central west of Brazil and northeast of Argentina.
Arica and Parinacota is located in a strategic zone. According to the features it has can
meet logistics needs of markets that require port, transportation and storage services.
Arica’s port is one of the main terminals of Chile, which has had an important growth because of the great movement of Bolivian cargoes. The growth rate of the Bolivian cargoes
over recent years has been about 20% approximately.
Chile leads the South American logistics efficiency ranking, which makes it even more
interesting to invest in this initiative.
There is a great interest from businessmen to use the Arica region to stock Bolivian export
cargo in order to avoid uncertainty of road transport of cargo.
Potential market:
It is strongly oriented towards international markets.
Bolivian high growth of specialized loads of projects.
Opportunities
• Promote exportation of services.
• Lack of specialized industries in particular cargoes.
• Increase regional competitiveness.
• A large increase in the cargo movement in the port of Arica has occurred during 2014,
moving 3,074,883 tons.
• The implementation of an Interoceanic Corridor that will connect de Mato Grosso zone
in Brazil with Arica.
• Arica’s port enterprises http://www.puertoarica.cl
• Arica’s port terminal http://www.tpa.cl
• Bi-oceanic corridor
http://www.difrol.gob.cl/corredores-bioceanicos/corredores-bioceanicos.html
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On July, 2013,
the Photovoltaic Solar Park “El Aguila”
was inaugurated. With 2 MW of power,
the plant is connected to
SING trough a substation,
property of E-CL, which allows
covering a 30% of the energetic
requirements of the operations
from “El Aguila”, which belongs
to Quiborax S.A.
2.4 NONCONVENTIONAL RENEWABLE ENERGY IN ARICA AND PARINACOTA REGION
Description
Nonconventional renewable energy (NCRE) is obtained from inexhaustible natural sources, such as the sun, wind or the sea, and they have the distinction of being transformed
into electrical energy.
The Arica and Parinacota region has unique conditions, a high solar radiation of 2,342
KWH/m2/year, and available zones for the installation of PV power plants. Wind power is
another of the NCRE that can be used due to the climate advantages of the zone. Nevertheless, it has not been exploited so far. The Chilean desert provides an advantage related
to the altitude, causing the dry air not to expand the electromagnetic waves, allowing the
accumulation of them on a PV power panel. The accumulation of the waves is higher than
in the Mojave Desert.
These initiatives contribute to an autonomous power supply system in the region, on a
country highly dependent on foreign oil. It is a challenge for the government, that by
the year 2025, 20% of the Chilean energy supply will be composed by renewable energies.
Therefore, the construction of renewable energy plants is essential for the sustainable
development of the country.
The goal of the government is to promote the regional climate and geographic conditions,
in order to launch it as the capital of the renewable energies in Chile.
In the Arica and Parinacota region there are requests of land addressed to the National
Assets Ministry, which manifests a clear interest, especially from private actors, to develop NCRE projects in the zone.
Potential Market
To cover the energetic demand of the country, especially the one generated by the mining
companies.
Opportunities
• Unexplored market, few competitors.
• High demand for clean energies, by mining and industrial companies.
• Large areas of flat surface.
• Projects with social acceptance because of their status as non-polluting.
• Cordap is developing the MASSOL project that seeks to expand the use of thermosolar
and photovoltaic home energy.
29
• There are three projects that already received RCA (environmental qualification resolution). The first one is the multinational Sky Solar Chinese plant, with an investment
of US$70 millions and 127 hectares, located 26 kilometers away from Arica, in El Aguila
hill. With 84,240 PV panels, it produces 18MW. The second project corresponds to Pampa
dos Cruces, of the Solventus Company, that will invest US$ 82 millions, with 313,020 PV
panels and 30 MW of power. The third project is led by the Mainstream Renewable Power
company, with an investment of US$180 millions. The idea is to build a PV park called “El
Aguila”, with 252,000 PV panels and 70 MW of power, located at 1,800 meters above sea
level on a surface of almost 146 hectares.
• On July 4, 2013, the Photovoltaic Solar Park “El Aguila” was inaugurated. With 2 MW of
power, the plant is connected to SING trough a substation, property of E-CL, which allows
covering a 30% of the energetic requirements of the operations from “El Aguila”, which
belongs to Quiborax S.A.
• The Regional Bureau of National Assets is working on the lands disaffection in Pampa
Camarones to be allocated to projects of Solar Energy.
Related web pages (public entities, local information)
• Ministry of National Assets : http://www.bienesnacionales.cl/
• Ministry of Energy http://www.minenergia.cl/
• Ministry of the Environment : http://www.mma.gob.cl/
• National Commission of Energy : http://www.cne.cl/
• Center of Renewable Energies : http://www.cer.gob.cl/
30
The Arica and Parinacota Development
Corporation presented the project
“Fattening of the Northern Pacific oyster”.
The experimental phase turned out
with positive results, proving to be
a viable and profitable initiative.
2.5 AQUACULTURE IN ARICA AND PARINACOTA REGION
Description
Aquaculture consists on growing aquatic plants or breeding fish, crustaceans and mollusks as hydro biological resources on under control environments, with the goal of obtaining an abundant production for local purchase and commercial purposes.
The Arica and Parinacota region has an extensive sea surface. Currently, 5 maritime concessions are being processed and 9 are assigned, at the south of Arica. Nevertheless, this
activity is new, but it opens opportunities to develop associations and strategic alliances.
Nowadays, some inland aquaculture projects are underway, breeding and fattening of
species such as dorado, paiche and tilapia.
The University of Tarapaca is developing the strategy of aquaculture development in the
Arica and Parinacota region, the project is supported by Corfo.
Potential Markets
The main export markets for aquaculture are Japan, USA and the EU besides national demand for marine products.
Opportunities
• New industry in the region, little or no competition at all.
• Fast development of the Pacific or Japanese oyster (Crassostrea gigas),
compared to the breeding in other regions of the country.
• Mild climate, absence of rough water and storms.
• Areas of flat land for inland aquaculture
• The Arica and Parinacota Development Corporation presented the project “Fattening
of the Northern Pacific oyster”. The experimental phase turned out with positive results,
proving to be a viable and profitable initiative.
• Existence of processing plants with experience in seafood exportation to the EU, USA,
Japan and Australia, among others.
• Delivered and available concessions in the region.
Related webpages (public entities, local information):
• National Service of Fishing and Aquaculture http://www.sernapesca.cl/
• Chilean National Council for Science and Technology http://www.conicyt.cl/
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2.6 CHAIN OF ACTIVITIES IN ARICA AND PARINACOTA REGION
Description
The concept applies to the connection of goods and services with other countries that with
the fulfilling of a minimum process of transformation in Chile. The products are subsequently exported to markets in which Chile has benefits. This initiative becomes more important in Asian markets, where there are high tariffs, but Chile is exempted from paying
thanks to the trade agreements, and, therefore, has a significant competitive advantage.
The project suggests that entrepreneurs from other countries, which we call “partners”,
take part along with the Arica and Parinacota region, in a process of productive complementation, in order to export to destination markets, where Chile has preferential access.
There are several advantages that come with a project of this type, such as an increase in
the exportation volume and a strengthening of the already existent commercial relations
among entrepreneurs. In conclusion, is not about selling products from one country to
another, but a matter of working together towards a common goal (source: chain of activities, DIRECON).
Potential market
The main exportation markets are the countries that possess commercial treaties or free
trade agreements with Chile.
Opportunities
• Geographic location of Arica
• Proximity of the Peruvian and Bolivian markets
• Emergency laws that allow raw materials to enter the country
without paying any taxes (Industrial Free Trade Zone)
• Chile’s prestige as an exporting country
• To expand the exportable offer, based on the advantages offered by the region.
32
• There are Bolivian companies that import woods of that country and make furniture,
which are exported to different countries.
• KYC Seafoods Ltda. and Agropesca S.A., anchovy fillets companies, import semi raw
material from Peru and their Arica’s plants canned anchovies and export them to USA, UE
and Australia.
• Customs: http://www.aduana.cl
• Zofri: http://www.zofri.cl
• Ministry of International Affairs : http://www.direcon.gob.cl
The region’s great advantage
is the geographical location
which places it in the center
of the copper mining in the world.
2.7 MINING INDUSTRY SERVICES
Description
Mining has not had a significant development in the Arica and Parinacota region. There
are several large mining companies that are conducting exploration in the region. The
region’s great advantage is the geographical location which places it in the center of the
copper mining in the world. This location allows to the companies of mining services installed in our region can deal without a major movement to mining companies in the neighboring regions and mining companies in southern Peru.
With the existence of companies prospecting in Arica and Parinacota, it is expected to
eventually develop a sustainable mining.
Potential Market
Mining companies outsource most of their services. In addition, there always are projects
in development to improve and expand itself, so the service industry for mining has had
a great growth.
Bolivia is also an unexplored mining services market.
Peru in the last decade has been promoted as a mining country and requires many services.
Opportunities
• New markets
• Scarce offer of mining services in the region
• Previous preparation for service demand
33
• Quiborax S.A, a plant that processes and extracts ulexite, has a production of 100,000
tons of boric acid, and it is considered as the third largest producer in the world.
• Celite, a plant that processes and extracts diatom or kieselghur, has a production of
28,000 metric tons per year.
• Can Can, a mining company that belongs to the Angelini group, announced the beginning of mining operations at the Choquelimpie site, a project that includes an investment
of US$600 million. Tailings are treated in a plant located in the same sector of Putre.
• The explotation of Salamanqueja deposit is the first initiative of Pampa Camarones
S.A, a Chilean company created in 2009, which belongs to Pampa Mater S.A (65.3%), Arrigoni Minería SpA (26.7%) and to Samsung C&T Chile Copper SpA (8%), with an initial investment of US$30,000,000. The deposit expects a production with resources of 12,000,000
tons of average grade copper.
• The Southern Cooper Corporation is in the process of exploring its Catanave project.
• The company Minera Rio Tinto is in the process of exploring its Mamuta project in
Camarones, and Palmani in Alto Lluta.
• Ministry of Mining http://www.minmineria.gob.cl/
• Ministry of National Assets http://www.bienesnacionales.cl/
• Ministry of Energy http://www.minenergia.cl/
• Ministry of Environment http://www.mma.gob.cl/
The Arica hummingbird, with its 8 cms. in length,
is the smallest Chilean bird, and one of the smallest of the world.
Alpaca en el bofedal de Parinacota
Couple of Putre children
dancing a traditional dance.
36
CHAPTER III SPECIAL PLAN OF STRATEGIC DEVELOPMENT
President Michelle Bachelet signed a decree formalizing a Special Plan of end zones, in
June, 2014, involving the investment of public resources by US $ 3,000 million at the end
regions of Arica and Parinacota, Aysen and Magallanes.
The Special Plan for the Region of Arica and Parinacota is a roadmap to a set of public investments of US $ 1,000 million over six years, which was developed through broad public
participation and whose horizon is lead the region to own standards of overall development of the country.
3.1 PLAN STRUCTURE
The Plan is structured on two strategic nodes:
3.1.1. “Every Chile is Chile”, whose purpose is to overcome the structural weaknesses of
the region, providing the entire region’s population of the basic elements that provide a
quality of life that ensure compliance with the essential conditions involving dignity and
respect by the State with all its citizens.
3.2.2. “Arica and Parinacota joins the development of Chile”, intended for comprehensive
strengthening of the dimensions that are the basis of long-term competitive advantage
and allow seize opportunities and overcome any weaknesses, based on regional resources and capacities to achieve a regional product per capita equal to or superior to national
average.
This, in a context of environmental conservation and the need to recognize the cultural
identity of indigenous peoples and respect for their rights in strategic value.
3.2 STRATEGIC NODE “EVERY CHILE IS CHILE”
This node has three axes:
3.2.1 “Parinacota, where Chile born”. Parinacota is the province located in the foothills
and highland region of Arica, suffers from depopulation and lacks of basic services infrastructure for the population, such as electricity, sewage and potable water, telecommunications and its secondary road network is precarious. CH-11 international road, which
connects Arica and Bolivia, crosses this province and becomes in the backbone of its road
network. This Strategic Axis aims to overcome these deficiencies and thereby solve the
territorial inequality.
37
This Strategic Axis is intended to solve
the housing shortage, especially
social housing, improve drinking water
quality and quantity and solve the deficit
of hours of medical specialties
in the public health system.
3.2.2 “Camarones, a necessary present”. Camarones is a rural commune located at the
south west of the region, whose inhabitants engaged in agriculture, tourism and fishing.
Being pair of Arica province, it has similar shortcomings than counties of Parinacota
province: connectivity, drinking water, sewerage, electricity, and others. Therefore, this Axis
has the same purpose, but through projects that respond to their geographic, economic
and demographic characteristic.
3.2.3 “Arica, a possible future”. The Arica commune concentrates more than 97% of the
population in the region and despites its geographic location, its geopolitical importance,
its climate and privileged location, has a lower level of urban development than Tacna and
Iquique. This Strategic Axis is intended to solve the housing shortage, especially social
housing, improve drinking water quality and quantity and resolve the deficit of hours of
medical specialties in the public health system.
This Strategic Axis is intended to solve the housing shortage, especially social housing,
improve drinking water quality and quantity and solve the deficit of hours of medical
specialties in the public health system.
3.2.4 “ALL CHILE IS CHILE” node INITIATIVE
INITIATIVE
Rural electrification
Health Services Program
Polymetallic remediation study
(Copaquilla)
Independent slaughtering plant (Pilot)
High Performance Sports Center in
Heights
Social housing construction
Purchase of land for social housing
MINISTRY
TOTAL COST
EXECUTING SECTOR CL$ MILLIONS
Interior (GORES)
2.834
Interior (GORES)
7.000
Interior (GORES)
190
Interior (GORES)
Joint (GORES-IND)
Housing
Housing
Construction Sector El Alto
Housing
Neighborhoods Development Program Housing
Landfill construction
Interior (GORES)
NODE “ALL CHILE IS CHILE” TOTAL
INVERTION % PROGRESS
2014-2018
2018
2.834
100%
7.000
100%
190
100%
3.500
5.250
3.500
5.250
100%
100%
151.930
15.190
65.140
15.190
43%
100%
2.800
13.000
3.500
205.195
2.800
13.000
3.500
118.404
96%
100%
100%
58%
38
3.3 STRATEGIC NODE “ARICA AND PARINACOTA JOINS THE DEVELOPMENT OF CHILE”
This node has five axes:
3.3.1 “Arica and Parinacota all year”: focuses the investments in tourism infrastructure,
restoration and preservation of cultural heritage and identity. It considers projects such as
the coastal border, the Chinchorro Culture Grand Museum and the Route of the Missions.
3.3.2 “Farming in the desert”: the region has high technology and productivity agricultural
valleys required to improve water supply in quality and quantity. The plan inquiry important
projects of dam construction, improvement of water, feasibility studies for a desalination
plant and support to foothills and highland agriculture and livestock.
3.3.3 “Gateway to Asia Pacific”: Arica port plays a key role in the transit of goods to and
from Bolivia, in compliance with the Treaty of Peace and Friendship of 1904. To remain
in compliance with the Treaty to the satisfaction of Bolivians customers, it is essential
to initiate studies to build a new port, located outside the urban area that has enough
storage space to cater for the growth in services, high logistics and integrated services.
Also, improve Route 11-CH. Both needs are included in the Special Plan.
3.3.4 “University City”: the plan includes major investments in infrastructure so that the
region State University expands its range of racing undergraduate and graduate.
3.3.5 “Industrial and Commercial Park”: to complement the logistic services and develop
an industrial area to take advantage of tax and location benefits in the Andean South
Central region, the Special Plan includes the transfer of current industrial neighborhood
to the Chacalluta sector, which in addition to the advantages for the industry, mean the
release of a large area for urban development in the geographical center of the city, where
today housed the industrial neighborhood.
39
3.3.5 NODE “ARICA AND PARINACOTA JOINS THE DEVELOPMENT OF CHILE” INITIATIVES
INITIATIVE
Construction Chinchorro
Culture Museum
Restoring heritage sites
Heritage zoning plan
Old Town recovery:
XXI century
Centennial Park
Meeting Park
- Arica’s Morro
Olympic Swimming Pool design and repair
Coastline walks
Quiane productive cove
(Artisan Fishing Port)
Town Building Construction
New Port feasibility and zoning
study 11-CH Route
Route 11-CH
Livicar dam
Chironta dam
Umirpa dam
Water Scarcity Integral Study
Educational Infrastructure Plan
North Industrial Park (Chacalluta)
NODE “ARICA AND PARINACOTA
JOINS THE DEVELOPMENT OF CHILE”
TOTAL
MINISTRY
TOTAL COST
Education
26.000
2014-2018
2018
11.000
42%
Interior (GORE)
Interior (GORE)
Housing
10.661
10.250
9.261
10.661
2.250
5.032
100%
22%
54%
Housing
Housing
4.300
4.447
4.300
4.447
100%
100%
Interior (GORE)
MOP/Others
MOP/Others
3.500
26.600
400
3.500
26.600
400
100%
100%
100%
Interior (GORE)
MOP/Others
14.000
1.250
2.500
1.250
18%
100%
MOP
MOP/Others
MOP/Others
MOP/Others
MOP/Others
Education
Interior (GORE)
70.000
40.000
48.000
13.972
500
50.000
5.600
338.741
54.810
4.000
25.000
532
500
32.687
5.600
195.069
78%
10%
52%
4%
100%
65%
100%
58%
Finally, the Special Plan includes initiatives that do not constitute investment in
infrastructure: the tourist promotion and the strengthening of the professional staff in
the region.
40
3.4 OTHER INITIATIVES INCLUDED IN THE SPECIAL PLAN
INITIATIVE
Tourism Extreme Zones Plan
Regional strengthening
Municipal strengthening
OTHER INTIATIVES OF
THE SPECIAL PLAN TOTAL
MINISTRY
TOTAL COST
SERNATUR
2.000
SUBDERE
1.167
SUBDERE
1.167
4.334
2014-2018
2018
2.000
100%
1.167
100%
1.167
100%
4.334
100%
View of the Lluta Valley, famous for corn, onions and garlic production.
42
CHAPTER IV POTENTIALITIES AND TAX ADVANTAGES OF THE REGION
4.1 Tax Credit to Regional Investment
The tax credit to regional investment is an incentive for taxpayers to declare the First Category Tax and make investments over 5000 UTM (monetary unit of no physical existence
that is readjusted monthly according to inflation, value to March 2015 CL$ 43,240 equivalent to USD 68,63) in Arica or Parinacota. The investment is destined for the production
of goods or services. There is no maximum limit for the investment; therefore, there is no
limit for the tax credit.
The benefit is automatic (does not require application) and corresponds to a 30 or 40% of
the investment. Arica’s investments have the right to a tax credit for 30% of the investment. The ones carried out in Parinacota generate a tax credit of 40%, same percentage
than the investments carried out for tourism in Arica.
When the credit amount is equal or higher than the average of the first category tax determined during the last three years, the mandatory monthly payment (PPM) can be suspended.
It is important to point out that the profits defined by the law, correspond to the whole
year profit of the company, whether they belong to activities carried out in the region or for
the investment carried out outside it. This gives to the credit a particular speed of recovery
for national companies already established and with activities in other regions of the country. The income tax that must be paid for the profits generated in the rest of the country
will be paid by the tax credit obtained in the region, and a refund of the already paid PPM
(monthly provisional payment) will be given.
This benefit is in force for investments carried out before December 31, 2025, and the tax
credit will apply until 2045.
Legal reference: Law N° 19,420, Law N° 19,669, Law N° 20,655
More information:
http://www.sii.cl/contribuyentes/actividades_especiales/zonas_extremas.htm#arica
http://www.leychile.cl/Navegar?idNorma=30787
43
4.2 Industrial Free Trade Zone
The manufacturing industrial companies installed in Arica enjoy the benefit from the preferential tax regime established by decree law 1055 (1975), meaning, that they can be a
part of the Free Trade Zone system of Arica.
By definition, the industrial companies carry out activities in factories, plants or workshops, destined to produce merchandise with a final product which is different than the
raw materials, parts or pieces used in the manufacturing process.
The preferential tax regime also applies to companies that during their productive process
cause an irreversible transformation of raw materials, parts or foreign pieces used in the
manufacturing process that adds value to the final product.
Raw materials, pieces and parts that are imported for incorporation into the final product
are exempted from payment of duties, fees, customs duties and VAT (value-added tax).
Also, the services required for the industrial process are exempted from paying valueadded taxes, such as transportation, electric energy, water, etc, according to the law 20,655
for distant zones.
The products elaborated by Free Trade Zone companies, are exempted from paying taxes, fees and custom duties (including clearance fees) when imported into the rest of the
country.
Legal reference: DFL N° 2, DFL N° 341, Law N° 19,420, Law N° 19,669, Law N° 20,655
More information:
http://www.sii.cl/pagina/jurisprudencia/legislacion/complementaria/dfl_341.htm
http://www.sii.cl/pagina/jurisprudencia/legislacion/complementaria/dfl_341.htm
http://www.zofri.cl/index.php/es/atractivos-para-la-inversion-.html
44
4.3 Workforce Hiring Bonuses
It’s a monthly bonus that is given to employers of Arica and Parinacota for workforce hiring and the payment of the consequent taxes.
The monthly amount of the bonus is CL$ 33,547 for 2015. This amount is adjusted on
January 1 st of each year, according to the CPI projection determined by the Central Bank
of Chile.
Workers that are partners or owners, and direct relatives are excluded from the benefit.
The employers from these sectors are also excluded:
The public sector, the Large and Medium copper mining and iron enterprises, companies in
which the state or its enterprises receive a governmental fee of more than a 30%, mining
companies that directly or indirectly hire more than 100 workers at the same time, banking corporations, financial corporations, insurance companies, reductive fishing, pension
funds administrators, private health insurance companies, currency exchange agencies,
insurance brokerage firms, employers that receive bonus according to the law n° 701,
from 1974 (incentive for the development of forestation) and independent and professional workers.
This benefit is currently in force until December 31, 2025.
Legal reference: Law N° 19,853, Law N° 20,655
More information:
http://www.sii.cl/pagina/jurisprudencia/adminis/2003/renta/ja509.htm
http://www.tesoreria.cl/web/Contenido/Documentos/3770/guia_egresos.pdf
4.4 Investment Bonus: Priming Fund and Development of Distant Zones
The bonuses grant funds to promote the development of small and medium size business
and services and investments carried out in: construction, machinery and equipment,
special animals for reproduction, and transportation vehicles with capacity for more than
2,500 kilograms and passenger vehicles for more than 14 passengers.
The maximum allowable bonuses correspond to a 20% of the investment or 50,000 UF
(monetary unit of no physical existence that is adjusted daily according to Consumer
Price Index CPI, its value to April, 9 2015 CL$ 24,651 equivalent to USD 40,00), and as a
requirement, the beneficiary annual sales cannot exceed 40,000 UF.
This benefit has been extended until December 31, 2025.
Legal reference: DFL N° 15, DL Nº 3,259, Law Nº 20.655
More information:
http://www.corfo.cl/programas-y-concursos/programas/dfl-15-bonificacion-a-compra-de-bienes-de-capital-para-zonas-extremas
4.5 implified Exports System
(also known as VAT refund for tourists)
When leaving the country, crossing the border check of Chacalluta, foreigners that bought
products in licensed businesses (allowed to extend bills for foreign people), may recover
the VAT value in the office of the Treasure Department, located in said border check. The
minimum value of purchases to invoke this benefit is 0.5 UTM (US$40). The tourist will be
able to ask for a refund not exceeding US$2,000 dollars per day.
This tool improves the commerce competition of licensed businesses in Arica, taking into
account that Tacna also has a Free Trade regime (ZOTAC), and the rates of informal flow
trade is very high.
Legal reference: Law Nº 18.841, Law Nº 20.655
More information:
http://www.sii.cl/documentos/resoluciones/2009/reso67.htm
http://www.sii.cl/documentos/circulares/2009/circu33.htm
45
46
4.6 Export Centers
Exportation centers are considered within the incentive plan for the development of the
region, pointed out by law 19,420 (2001). These centers are private areas located in the
region, destined to collect national goods, and from other foreign and South American
countries, free from paying VAT and custom fees.
Goods are allowed to be exhibited, packed, unpacked, labeled, re-packed and then sent to
different destinations: foreign lands, Zofri and Arica’s Free Trade Zone, free from taxes.
The delivery to the Trade Free Zone has a 0.58% of the CIF value, and to the rest of the
country a payment of custom burdens and VAT must be carried out. The cargo movement
must be a wholesale transaction, or whose value exceeds 15 UTM (US$1,200)
More information:
http://www.chileatiende.cl/fichas/ver/19
4.7 Establishment of gambling casinos
The law N° 19,420 called Arica I authorized the installation of new casinos in the Arica
town, which must fulfill the following special conditions:
• The tourism investment should be made in the applicant’s own grounds.
• The investment should include the construction of a hotel of at least 80 rooms,
restaurants, bars, conference or event rooms, Box foreign exchange and pools.
• The applicant must be a closed corporation under Chilean law, established in Arica,
with a maximum of 10 members with a paid capital not less than 20,000 UF.
This law allows that in the Municipality of Arica can coexist more than one casino, as long
as they are embedded in a resort, above.
4.8 Extension Free Trade Zone
Iquique’s Free Trade Zone, established by the Decree with Force of Law N° 341 (1975),
determined that the merchandise sold within the Free Trade Zone (ZOFRI) for use/consumption in the former region of Tarapaca were exempted from VAT. By this means, the
Extension Trade Zone was found. Despite the creation of the Arica and Parinacota region,
the limits of the trade zone were maintained going from the frontier with Peru (north) to
the Loa River (south).
On the other hand, the ZOTAC in Tacna (free trade zone from Tacna) is a commercial free
trade zone and an extension zone in which purchases are exempted from paying IGV (tax
on general sales, equivalent to VAT). Thus, from Arica is easy to acquire free tax products,
which translates into an advantage regarding prices.
Legal reference: Law N° 19,420, DFL N° 341
More information:
4.9 Special Taxes for Residents
The residents of Arica and Parinacota enjoy a “regional bonus” consisting of a reduction
in the tax base on which the calculation of the Income Tax and the Global Complementary
Tax it’s applied, so it is not an income. The dependent workers with a contract according to
the Labor Code and the independent workers that issue receipts for fees for their services,
enjoy this reduction.
The “regional bonus” is equivalent to the 40% of the income, with a maximum bonus equal
to the local bonus that a public employee grade 1-A of the Unique Scale of Salaries on
the public section receives, according to the D.L. N° 249 of 1974: the 56% of $603,016, ie,
$337,689 monthly income untaxed.
Legal reference: DL N° 249
More Information:
http://www.sii.cl/documentos/circulares/1976/circu10a.htm
47
48
4.10 Registration Certificate
The Arica and Parinacota region has others benefits for its inhabitants: the Article 13 of
the Municipal Income Act reduces by 50% the appraised value of the vehicle established
annually by the Internal Revenue Service (IRS), the registration certificate is calculated
over this value.
This benefit only applies to particular cars, luxury rental cars, passenger or special services
vehicles, station wagons, vans, ambulances, hearses, cars, trucks and motorcycles whose
owners reside in the region.
Legal reference: DL N° 3,063
More information:
http://www.sii.cl/pagina/jurisprudencia/legislacion/complementaria/ley_3063a.htm
A report entitled on the scope of the Law of Extremes Zones for Arica and Parinacota
Region, prepared by counsel, Mr. Letelier Raul Castro is included in Annex Nº 2.
This beautiful church is located in the middle of Parinacota’s town.
Declared a National Monument on May 4, 1979.
50
CHAPTER V BENEFITS REQUIREMENTS AND PROCESSING
5.1 INVESTMENT TAX CREDIT
Benefit name
INVESTMENT TAX CREDIT
Responsible institution
Arica and Parinacota Internal Revenue Service
Address: Arturo Prat N° 305, Arica
Phone: 56-58-2587000
www.sii.cl
Requirements
• Having Initiation of activities.
• Be a taxpayer with affection to the First Category Tax Law Income.
• Keep full accounting.
• The minimum investment is 500 UF.
Process
The taxpayer must inform the credit to the IRS by affidavit attaching a technical
detail of the investment which must specify at least:
• Description of the taxpayer activities.
• Description of the investment and its outreach.
• Current production or services capabilities.
• Production or services capabilities once the investment is done.
• Financing of the investment.
• Details of property to be acquired or built.
• List of the bills that support the investment.
• Total amount of the investment.
• Gantt chart of the investment.
Bonus payment
Notify the IRS of credit to be used in the respective Tax Year, on Form 22, Code 390.
Applicable until 2045.
Time limit to invest
Tax Year 2025.
51
5.2 ARICA INDUSTRIAL FREE TRADE ZONE
Benefit name
ARICA INDUSTRIAL FREE TRADE ZONE
Arica Industrial Free Trade Zone
Address: Chacalluta Industrial Park
Phone: 56-58-2585000
www.zofri.com
Customs Regional Directorate
Address: San Martin N° 141, 1st Floor, Alborada Building
Phone: 56-58-2207100
www.aduana.cl
Requirements
• Be First Class taxpayer.
• Perform an industrial process.
Process
Time limit
Make a presentation to the Arica Industrial Free Trade Zone with the following
documents in 4 copies:
• Cover letter and document delivery addressed to the Manager of Arica Industrial
Free Zone.
• Powers of the Legal Representative (if applicable).
• Representative ID photocopy.
• Special Purpose Record Certificate.
• Notarized affidavit.
• Constitution deed.
• Registration in the Register of Commerce.
• Official Journal Publication.
• Property deeds where will be the industrial processes with boundaries of the
enclosure (sketch).
• VAT number copy.
• Last Year balance (if applicable).
• User request.
• Project Profile.
Afterwards, it is sent to the Customs and once you receive the Resolution, must be
sent to Intendancy for the issuance of the Resolution, proceeding to perform the
Contract as Industrial User of the Arica Industrial Free Zone.
Indeterminate.
52
5.3 WORKFORCE HIRING BONUSES
Benefit name
WORKFORCE HIRING BONUSES
Arica and Parinacota Regional Treasury
Phone: 56-58-2231150 58-2235590
www.tesoreria.cl
Requirements
• Monthly pension contributions paid.
• Affidavit, declaring not been convicted in the past six months for anti-union practices or violations to the fundamental rights of the workers.
Process
The process can be done in person at the Treasury Department or online through
the website:
In Person Process:
• Employer ID.
• Updated sheet of impositions of the month requested.
• Deed of the Company (Corporations).
• Bonus Application.
• Affidavit.
• Company VAT number.
Online Process:
• Must request the key on the Treasury website.
• Go to Hiring Manpower Bonus.
• Follow the instructions.
The computer system feeds on information provided by the AFP and INP. The
system processes the bonus applications online, giving immediate response to the
request.
Bonus payment
5 days after the application is approved.
Time limit
Annual
53
5.4 BONUS FOR INVESTMENT IN EXTREME ZONES
Benefit name
BONIFICACIÓN A LA INVERSIÓN EN ZONAS EXTREMAS
Arica and Parinacota CORFO
Address: 7 de Junio N° 268, 7th floor, Arica
Phone: 56-58-2351650
www.corfo.cl
Requirements
• Annual sales under 40.000 UF
• Investment above 50.000 UF
• Companies are excluded if the products are related to:
• Copper and Iron Mining
• Extractive Industrial Fishing
• Public Sector
Process
Rules and forms are available at CORFO’s website or can be withdrawn in Arica’s
CORFO office, the application must be made by attendance and the background
application must be filed on CORFO’s offices, Arica Provincial Government and
Parinacota Provincial Government before time limit. The documentation to be
attached is:
• Application of investment or reinvestment bonuses on Distant Zones
• Start of operations photocopy.
• ID and VAT number photocopy for natural persons.
• Banking report if bank financing is required.
• Social Deed and its amendments, Official Journal Publication, Commercial Registry,
Notary authorized Devolution.
• Validity Certificate.
• Company and Legal Representative VAT number.
• Latest Income Tax Return (Form 22).
• Last 12 VAT returns (Form 29).
• Last Tax Balance.
• Project Profile to run must include at least:
• Market Aspects
• Technical Aspects
• Organizational Aspects
• Economic and Financial Aspects
• Result of Project Status
• Environmental Impact Considerations
Bonus payment
From November 15 to December 31.
Time limit
During the first quarter of next year.
54
5.5 SIMPLIFIED EXPORTS SYSTEM
(ALSO KNOWN AS “VAT REFUND FOR TOURISTS”)
Benefit name
SIMPLIFIED EXPORTING SYSTEM (VAT REFUND FOR FOREIGNERS)
Arica and Parinacota IRS
Phone: 56-58-2587000
www.sii.cl
Customs Regional Directorate
Address: San Martin N° 141, 1st Floor, Alborada Building
Phone: 56-58-2207100
www.aduana.cl
Requirements
• Be a taxpayer whose business is the transfer of movable tangible property affections to VAT.
• To possess a head office and/or branch in Arica and Parinacota Region.
• Online monthly tax records and payment. Form 29.
• Updated status at tax obligations fulfillment.
Process
The taxpayer shall apply for registration in the special register that IRS leads agree
with the address used in Form 2117. Prior to the inclusion on the referred register,
the unit or Regional Management will verify the address and activity of the applicant. Later it will allow the registration in the Special Economy Bill record.
The taxpayer may cast Tourist Bill, in four copies and shall provide the triplicate and
quadruplicate to the purchaser.
To emit a Tourist Invoice, the purchaser must be a natural person neither domiciled
nor resident on the country. The consumed products are not entitled to a refund;
such products must cast a ballot.
Bonus payment
VAT recovery
The beneficiary has a period of 90 days from the date the bill is issued to apply for
the benefit.
The beneficiary must reach the Chacalluta border crossing with the merchandise
purchased and the third and fourth copies of the Tourist Invoice, delivering in Customs for accurate verification of what is stated in the invoice and the transported
merchandise.
The officer shall make the bill registration on the IRS system and will issue a Payment Order for VAT recovery in the State Bank case enabled for this purpose.
Time limit
Indeterminate.
55
5.6 EXPORTS CENTERS
Benefit name
EXPORTS CENTERS
Finance Ministry
Requirements
• Natural or Legal person.
• Fulfill requirements specified in tender.
Process
The Exporting Centers Administration will be granted by tender issued by the Treasury Department.
The contracts relating to the Exporting Centers administration and operation will be
established by Supreme Decree issued by Treasury
Time limit
Indeterminate
Vicunas, these beautiful South American camelids, live in the highlands
of cold and dry weather. They are herbivores and feed on plants in the highlands and high plateau steppes.
58
CHAPTER VI COMPARATIVE ANALYSIS OF RESULTS
By Luis Araníbar, International Service Ltda.
6.1 COMPARATIVE TABLE: SUMMARY ANALYSIS OF ARICA AND PARINACOTA REGION INCENTIVES
The following table summarizes the benefit analysis results of each business model, assumption considers US$1.000.000 investment,
40 workers labor, CL$ 400,000.000 annual gross sales and CL$40,000,000 annual profit, used in each situation:
ITEM/INCENTIVE TO
ANALYZE
GENERAL SYSTEM
COMPANY OUT
OF ARICA
GENERAL SYSTEM
COMPANY
IN ARICA
INDUSTRIAL ZONE
COMPANY
IN ARICA
GENERAL SYSTEM COMPANY
WITH HEAD OFFICE IN
SANTIAGO AND BRANCH IN
ARICA FREE ZONE I
TAX CREDIT
ARICA LAW
Not applicable
CL $ 189.000.000
CL $ 189.000.000
CL $ 189.000.000
DFL-15 BONUS
(ALTERNATIVE)
Not applicable
CL $ 126.000.000
CL $ 126.000.000
Not applicable
MANPOWER
BONUS
Not applicable
CL $ 177.128.160
CL $ 177.128.160
CL $ 177.128.160
INDUSTRIAL
FREE ZONE
•Exempt from payment
income tax.
•Exempt from payment
VAT.
•Exempt from payment of
fees.
•Exempt from payment of
MPP.
•Subject to payment of tax
law 18,211, equivalent to
0,58% of good CIF value.
Not applicable
Not applicable
Subject to:
•Payment income tax
of first class
•Monthly Provisional
Payments (MPP)
•VAT
Subject to:
•Payment income tax of
first class, which can be
paid with Tax Credit of
Arica Act.
Payments (MPP)
•VAT
Not applicable
GENERAL SYSTEM
Only the branch in Arica Free
Zone:
•Exempt from payment income
tax.
•Exempt from payment VAT.
•Exempt from payment of fees.
•Exempt from payment of MPP.
•Subject to payment of tax law
18,211, equivalent to 0,58% of
good CIF value.
For any branch out of free
zone, subject to:
•Payment income tax of first
class, which can be paid with
Tax Credit of Arica Act, for
both utilities, branch and head
office.
Payments (MPP)
•VAT
1st YEAR INCENTIVES
TAX CREDIT
ARICA LAW
$0
CL $ 25.102.560
CL $ 25.102.560
CL $ 126.352.560
$0
CL $ 366.128.160
CL $ 366.128.160
CL $ 366.128.160
INCENTIVE VS INVESTMENT CONTRIBUTION
$0
58,12%
58,12%
58,12%
59
6.2 PRACTICAL EXAMPLE Nº 1
General System Company located out of Arica (In the rest of the country)
Records
• Investment in new depreciable fixed assets
US $
1.000.000
$ 630.000.000
Exchange rate CLP $630
40
• Number of workers
• Annual net sales
$ 400.000.000
• Utility
$ 40.000.000
Tax Area
•Income tax first class
2015 Tasa
22,5%
taxpayer
2016 Tasa
24%
2017 Tasa
25%
Tax Determination
2015 (40.000.000 X 22,5%)
$9.000.000
2016
(40.000.000 X 24%)
$9.600.000
2017
(40.000.000 X 25%)
$10.000.000
Incentives Application
•Tax Credit Arica Law
NOT APPLICABLE
•Investment Bonus DFL-15
NOT APPLICABLE
•Manpower Bonus DL. 889
NOT APPLICABLE
•Industrial Free Zone
NOT APPLICABLE
60
General System Company located in Arica
Records
• Investment in new depreciable fixed assets
US $
1.000.000
CL $ 630.000.000
40
• Number of workers
• Annual net sales
CL $ 400.000.000
• Utility
CL $ 40.000.000
Tax Area
2015
Rate
22,5%
2016
Rate
24%
2017
Rate
25%
•Income tax first class taxpayer
Tax Determination
2015 (40.000.000 X 22,5%)
CL $ 9.000.000
2016
(40.000.000 X 24%)
CL $ 9.600.000
2017
(40.000.000 X 25%)
CL $ 10.000.000
Access to incentives
•Tax credit Arica Law CLP $630,000,000 x 30%
CL $ 189.000.000
•DFL-15 (alternative to tax credit) CLP $630,000,000 x 20%
CL $ 126.000.000
Manpower bonus DL.889 (Annual) CLP $33,547 (per worker) x 40
CL $ 16.102.560
(worker number) x 12 (months)
OPTION A: Tax Credit Supplication
•Income tax determination CLP $40,000,000 x22,5%
•Credit use: CL $
9.000.000
CL $
9.000.000)
CL $
0
CL $
9.000.000
Total credit CLP $189,000,000
Credit used in the example CLP $8,000,000
Following year remnant CLP $180,000,000
•Income tax to pay
Incentives Realization for the First Year
•Income Tax (Savings)
CL $ 16.102.560
•Manpower Bonus
Total Benefits, CLP
CL $ 25.102.560
61
Incentives projection by 2025 (13 years)
CL $ 189.000.000
•Income tax first class (Savings)
CL $ 177.128.160
•Manpower Bonus CLP $14,851,200 x 13
Total Benefits, CLP
CL $ 366.128.160
Incentive vs. Investment contribution: 58.12%
OPTION B: DFL-15
•Investment in new depreciable fixed assets:
CL $ 630.000.000
•Calculation of DFL-15 Bonus CLP $630,000,000 x 20%
CL $ 126.000.000
Note: When the company gets the DFL-15 benefit by investments, the company earns
for one time only, a maximum amount equivalent to 20% of capital expenditures, which
disables the company to get another benefit for its investments, such as tax credit of
Arica Act. A company can apply to only one of the benefits of the area for any investment.
•DFL-15 Bonus
CL $ 126.000.000
•Manpower Bonus
CL $ 16.102.560
Total Benefits, CLP
CL $ 142.102.560
•DFL-15 Bonus
CL $ 126.000.000
•Manpower Bonus CLP$16,102,560 x 11
CL $ 177.128.160
Total Benefits, CLP
CL $ 303.128.160
62
Industrial Free Trade Zone Company in Arica
Records
•Investment in new depreciable fixed assets
US $
1.000.000
CL $ 630.000.000
40
•Number of workers
•Annual net sales
CL $ 400.000.000
•Utility
CL $ 40.000.000
Tax Area
2015 Rate
22,5%
2016 Rate
24%
2017 Rate
25%
Tax Determination
Exempt
Access to incentives
•Tax credit Arica Law CLP $630,000,000 x 30%
CL $ 189.000.000
•DFL-15 (alternative to tax credit) CLP $630,000,000 x 20%
CL $ 126.000.000
Manpower bonus DL.889 (Annual) CLP $33,547 (per worker) x 40
CL $ 16.102.560
(worker number) x 12 (months)
OPTION A: Tax Credit (Temporal disclaimer to the Income Tax exemption)
•Income tax determination CLP $40,000,000 x22,5%
•Credit use: CL $
9.000.000
CL $
9.000.000)
CL $
0
CL $
9.000.000
Total credit CLP $189,000,000
Credit used in the example
CLP $9,000,000
Following year remnant
CLP $180,000,000
•Income Tax (Savings)
CL $ 16.102.560
•Manpower Bonus
Total Benefits, CLP
CL $ 25.102.560
CL $ 189.000.000$
CL $ 177.128.160
Total Benefits CLP
CL $ 366.128.160
63
OPTION B: DFL-15
•Investment in new depreciable fixed assets:
CL $ 630.000.000
•Calculation of DFL-15 Bonus CLP $630,000,000 x 20%
CL $ 126.000.000
Note: When the company gets the DFL-15 benefit by investments, the company earns
for one time only, a maximum amount equivalent to 20% of capital expenditures, which
disables the company to get another benefit for its investments, such as tax credit of
Arica Act. A company can apply to only one of the benefits of the area for any investment.
CL $ 126.000.000
•DFL-15 Bonus
CL $ 16.102.560
•Manpower Bonus
Total Benefits CLP
CL $ 142.102.560
Proyección incentivos al 2025 (11 años)
CL $ 126.000.000
CL $ 177.128.160
Total Benefits CLP
Incentive vs. Investment contribution: 48,12%
CL $ 303.128.160
64
6.5 PRACTICAL EXAMPLE 4
GENERAL SYSTEM COMPANY WITH HEAD OFFICE IN SANTIAGO
AND NEW BRANCH IN ARICA INDUSTRIAL FREE ZONE
RECORDS
HEAD OFFICE
•Net sales
CL $ 4.000.000.000
•Paid PPM (rate 2,5%)
CL $ 100.000.000
•Utility
CL $ 450.000.000
Arica BRANCH
•Investment in new depreciable fixed assets
US $
Exchange rate CPL $ 630
CL $ 630.000.000
40
•Number of workers
•Annual net sales
CL $ 400.000.000
-0-
•Paid PPM (Accrued CL $10.000.000)
•Utility
1.000.000
CL $
40.000.000
TAX AREA
HEAD OFFICE
2015 Rate
22,5%
2016 Rate
24%
2017 Rate
25%
ARICA BRANCH
•Debit sales tax
Exento
Exento
ACCES TO INCENTIVE (ARICA BRANCH ONLY)
•Tax Credit Arica Act: CL $ 630.000.000 x 30%
CL $ 189.000.000
NO APLICA
•DFL/15 (alternative to tax credit) :
Manpower Bonus DL. 889 (Annual): CL $ 33.547 x 40 (number of
worker) x 12 (meses)
CL $
16.102.560
65
incentives application
CRÉDITO TRIBUTARIO (Renuncia temporal exención Impuesto Renta)
In this case, given the particular situation in which the benefits of the incentives in the
area can be used in the overall results of the company:
CL $ 110.250.000
•Income Tax determination:
• Head office utility CL $ 450.000.000 x 22,5%
= CL $ 101.250.000
• Arica branch utility CL $ 40.000.000 x 22,5% = CL $
Total Income Tax 9.000.000
CL $ 110.250.000
•Credit use: Total credit CL $ 189.000.000
Credit used in the example: (CL $ 110.250.000)
(CL $ 110.250.000)
Following year remnant: CL $ 78.750.000
CL $
0
Incentive realization for the first year
•Income tax (Saving)
CL $ 110.250.000
•Manpower Bonus:
CL $ 16.102.560
Total Benefits CLP
CL $ 126.352.560
Incentives projection to 2025 (11 años)
•Total Income tax first class (Saving)
CL $ 189.000.000
•Manpower Bonus: CL $ 16.102.560 X 11
CL $ 177.128.160
Total Benefits CLP
Incentive vs. Investment contribution: 58,12%
CL $ 366.128.160
66
APPENDIX N° 1
ARICA AND INDUSTRIAL ZONES MAP
ZI2, INDUSTRIAL ZONE 2:
Zofri Chacalluta
Gateway of America
Industrial Neighborhood
Industrial Fishing Sector
68
APPENDIX N° 2
LAW N° 20,655 REPORT ESTABLISHES
SPECIAL INCENTIVES FOR ARICA AND PARINACOTA REGION
The Law N° 20,655 establishes Special Incentives for Distant Areas of the country published in the Official Journal on February 1, 2013,
amends various Acts related with Arica and Parinacota Region.
For the purpose of facilitating the analysis of this Distant Zone Law, the main amendments to the Special Legislation available to the
Arica and Parinacota Region are set below.
1.- LAW Nº19.853 THAT CREATES HIRING WORKFORCE BONUSES.
The amendments made to this Law are:
a)Benefit from January 1, 2012 to December 31, 2025 is established;
b)It extends the scope of taxable incomes from $147.000.- to $182,000.-, keeping the 17% percent, giving a total bonus of $30,940.- for
each hired worker;
c)Employers may use this Bonus for permanent or part-time workers;
d)Such amount of $182,000.- will be adjusted on January 1st of each year according to changes in the CPI;
e)To be eligible for bonus payment, the employers must submit an Affidavit, declaring to have not been convicted in the past six months
for anti-union practices or violation to fundamental rights of workers.f)Treasury, as Inspector Benefit, may require to the Employers the delivery of the backgrounds it deems appropriate through any
medium.
2.- DECREE LAW N° 3,529 ON ADDITIONAL STANDARDS
OF FINANCIAL MANAGEMENT AND BUDGET IMPACT.
By this 1980 Decree, a Promotion Fund and Development for Distant Regions was created, in order to subsidize the investments and
productive reinvestments of small and medium investors. The stated Law No. 20,655.- introduced the following changes:
a)Bonuses that are granted under this fund will be 20% of each investment or reinvestment amount, during the years 2012 to 2025
inclusive;
b)This Fund may assign up to $2,500,000,000 annually, to Extreme Regions. This amount will be adjusted annually in the Budget Law
under CPI changes;
c)Resources distribution of this Fund shall be made by one or more Ministry of Finance Decrees;
d)This Fund is regulated by the Ministry of Finance DFL N° 3 in 2001, which approved the Revised, Coordinated and Systemized Text of
69
DFL N° 15 in 1981 of the same Ministry, which is also amended by the Law N° 20,655 in the following ways:
d.1. Establishing new standards of evaluation in the Projects’ quality;
d.2. Bonus requests will be received every year between November, 15 and December, 31, both dates inclusive;
d.3. Bonuses will be paid from the Budget of the following calendar year;
d.4. Resolving Committee Constitution of Development Fund for Distant Areas is amended.
3.- LAW N° 19.420 THAT STABLISHES INCENTIVES
FOR ECONOMIC DEVELOPMENT OF ARICA AND PARINACOTA PROVINCES.
In the Law N° 20,655 on Extreme Zones, the following amendments to the Incentives were introduced.
3.1 INVESTMENT TAX CREDIT:
The Articles 1 to 9 of the Law N° 19,420 (Arica Act I) regulate the Investment Tax Credit, entitled for taxpayers that declare the Tax First
Class of Income Tax Act, on effective rents determined by Full Accounting, for the Investments made in Arica and Parinacota Provinces
designed for production of assets and provision of services in this Provinces.This Credit is deducted from the First Class Tax that must be paid by taxpayers, from the commercial year of the asset acquisition or
construction. Unused credit during the year must be deducted from the following year.In the Law N° 20,655 on Extreme Zones were introduced the following amendments:
A) May Access this benefit those taxpayers whose investment projects exceed monthly the 500 UTM (Note: Before the Amendment were
2,000 UTM to Arica and 1,000 UTM to Parinacota).
B) The taxpayers may be eligible for this benefit since January 1st of 2012 until December, 31 of 2025 and the Credit recovery due to them
may be made until year 2045 (Note: Before the Amendment was until 2011 and 2034).
C) The taxpayer who made investments under the Investment Credit Tax may suspend their MPP according to the following rules and
by periods listed in Article 1 bis of Law N° 19,420, introduced by Law N° 20,655.:
70
3.2 EXTENDED BENEFITS ARE WELCOMED TO THE FREE TRADE ZONE SYSTEM OF IQUIQUE.
Law N° 20,655, subject of this report, expands the Franchise that the Industries of the Free Trade Zone from Iquique (Zofri) currently
have, established in DFL N° 341 of Finance Ministry year 1977, in the following sense: “May qualify to the Recovery Tax Plan of DL N°
825 of 1974 (Sales and Services Tax), on sales of assets of their own production made on the Extension Zone or to other users of the Free
Zone. These operations shall be documented through messages exchanged by the use of a technological system that will determine the
IRS by Resolution, which also set the content of those messages”.
3.3 ESTABLISHED BENEFITS IN FAVOUR OF INDUSTRIAL
COMPANIES INSTALLED IN ARICA WELCOMED IN THE INDUSTRIAL FREE ZONE SYSTEM.
Extreme Zone Act amended the Law N° 19.420, Article 35 and Arica Act II, providing that these companies will be exempted in their
import to the rest of the country and of the rights, rates and other charge customs determined by Customs, including rate of release,
only until December 31, 2025.
4.- BENEFITS FOR INDUSTRIAL MANUFACTURING COMPANIES
COMPANIES INSTALLED IN ARICA OR WELCOMED IN ARICA INDUSTRIAL FREE ZONE SYSTEM.
On the subject, in the Eight Article of Extreme Zones Act was replaced the first paragraph of Decree Law N° 2 Article 28 of 2001 Finance
Ministry, which approved the Revised, Coordinated and Systemized Tex of Decree Law N° 341 of 1977 Finance Ministry, on Free Zone,
the number 2012 with 2025, leaving the final words as follows: “The assets produced by Industrial Manufacturing Companies installed
or to be installed in Arica under the System established by Article 27 of this Title, and that develop activities aimed to obtain assets that
have an individualized difference with raw materials, foreigner parts or pieces used in its preparation, or in the production process cause
an irreversible transformation of those raw materials, foreigner parts or pieces will be exempted on their importation to the region and
the rest of the country, and will be exempted from, rates and other custom burdens determined by Customs, including rate of release,
only until December 31, 2025”.
5.- SIMPLIFIED EXPORT SYSTEM
ESTABLISHED IN THE LAW N° 18,841 IS FLEXIBILIZED.
Article 4 of this Law N° 18,841 provides that Natural Persons not domiciled nor resident in the country, who purchase assets valued at
0,5 UTM in Commerce establishments belonging to taxpayers benefiting from the legislation that effect has fixed the IRS in the Arica
Extension Free Trade Zone, which import or export such assets by those Zones are entitled to apply for VAT refund recharged on the
Ballot or Bill.The flexibility of this Law is that it lowers the value of the purchase of 1 UTM ($43,000.- Approx) to 0,5 UTM ($21,500.- Approx) to qualify
for this benefit.
71
This simplified system has been called Tourist VAT refund, which is absolutely wrong, since it is referred to assets and goods, not for
Touristic Services.In addition, it is deployed by the IRS just in Chacalluta Outpost (Border with Peru).
6.- DURATION OF THE LAW N° 20.655 ON DISTANT ZONES.
Article 10 of the Law N° 20.655 on Distant Zones provides that it shall come into force since January 1, 2012. In the case of Amendments
to Law N° 19.420 establishing incentives on Arica and Parinacota, XV Region, they shall apply in respect of investments consisting of
property that is acquired or completely built since January 1, 2012.In addition, this Article 10 provides that the suspension of Provisional Payments related with Investment Tax Credit shall take effect
after 90 days from the date of publication of the Law N° 20.655, i.e. from May 2, 2013.
RAUL CASTRO LETELIER
LAWYER
March 20, 2015 Arica
72
APPENDIX N° 3
BIBLIOGRAPHICAL REFERENCE
Law Nº 1.055 de 1975
LawNº 18.211 de 1983
LawNº 18.841 de 1989
LawNº 19.669 del2000
DL Nº 249de1974
DL Nº 3.063de1979
DFLNº
341 de 1977
DFLNº
15 de 1981
ARICA AND PARINACOTA ROAD NETWORK, XV REGION
Source: MIDEPLAN Cartographic Database, REGIONAL DIVISION - GEOGRAPHIC INFORMATION SYSTEM UNIT. Update: Year 2013
Road Network
Road Infrastructure
Boundaries
Population centers
SNASPE
Hydrography
Highway
Toll
International boundary
Regional Capital
National Park
Reservoir
Roadway
Raft
Regional boundary
Provincial Capital
National Reserve
Lake; lagoon
Gravel
Lateral toll
Provincial boundary
Communal Capital
Natural Monument
Salt lake
Gravel treated
Frontal toll
Ground
Tunnels
More
River
Ravine
Altimetry
00
.9
40
1
-6
20
.1
-5
1
14
5.
00
.7
-4
72
4.
30
.4
-4
1
40
4.
40
.1
-4
1
1
13
4.
40
.8
-3
1
84
3.
30
.5
-3
1
54
3.
20
.2
-3
1
23
3.
20
.9
-2
1
92
2.
30
.6
-2
62
2.
30
.3
-2
1
33
2.
20
.0
1
03
.7
-2
2.
-1
1
1
72
1.
0
50
.4
-1
1
45
1.
70
.2
0
-1
1
20
1.
40
-9
1
74
97
30
-7
53
1
-5
1
33
0
30
m.s.n.m.
60
Border pass
-3
Sea routes
Secondary roads
-1
Main roads
1
Railroad network
Range
Glaciers,
snowdrift
Town
Airdrome
National route
Km cover
Locations
Airport
16
International route
Airports
CORDAP appreciates the support of the
Regional Council for this project.
CORPORACIÓN DE DESARROLLO
DE ARICA Y PARINACOTA
WWW.CORDAP.CL
WWW.INVERTIRENARICA.CL

arica and parinacota

Transcription

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