"THE VALDÉS LAW, TAX INCENTIVE FOR THE PRIVATE TO FINANCE CULTURAL PROJECTS"

Dónde
Chile
When
2020
Quién
PRIVATE DONATIONS RATING COMMITTEE.
Describe the main features of the policy/measure: 

THE LAW ON DONATIONS FOR CULTURAL PURPOSES ("VALDES LAW") TAX INCENTIVES THOSE WHO DONATE MONEY OR SPECIES TO FINANCE THE EXECUTION OF A CULTURAL PROJECT PREVIOUSLY PRESENTED BY THE BENEFICIARY TO THE PRIVATE DONATIONS RATING COMMITTEE. THIS COMMITTEE IS THE BODY IN CHARGE OF KNOWING AND EVALUATING THE CULTURAL PROJECTS PRESENTED BY THE BENEFICIARIES OF THE DONATIONS FOR CULTURAL PURPOSES LAW. IT CAN APPROVE, APPROVE WITH CONDITIONS OR REJECT A PROJECT. IN ADDITION, IT SUPERVISES THE EXECUTION OF THE APPROVED PROJECTS, REQUESTING FROM THE BENEFICIARIES EACH YEAR, BEFORE DECEMBER 31, A REPORT WITH THE STATUS OF THE SOURCES AND DETAILED USE OF THE RESOURCES RECEIVED IN EACH PROJECT. THE COMMITTEE IS ALSO IN CHARGE OF DISCLOSING AND PROMOTING THOSE CURRENT APPROVED CULTURAL PROJECTS AMONG THE DONORS, THROUGH THE APPROVED PROJECT BANK PUBLISHED ON THE SITE:

THIS LAW IS ONE OF AT LEAST 12 LAWS ON TAX BENEFIT DONATIONS. IN SUMMARY, THE TAX BENEFIT CONSISTS OF A TAX DISCOUNT FOR THE DONOR, AS A TAX CREDIT AND / OR AS A TAX EXPENSE, DEPENDING ON WHO THE DONOR IS. THAT BENEFIT CONSISTS OF BEING ABLE TO REDUCE THE DONATION, FROM THE INCOME TAX OF THE FIRST CATEGORY OF COMPANIES THAT DECLARE THEIR EFFECTIVE INCOME ON THE BASIS OF FULL ACCOUNTING, EVEN THOUGH THEY HAVE TAX LOSS; OF THE COMPLEMENTARY GLOBAL TAX, EVEN IF THE TAXPAYER DOES NOT KEEP COMPLETE ACCOUNTING; ON THE SINGLE SECOND CATEGORY TAX; INHERITANCE TAX, AND THE ADDITIONAL TAX. THESE BENEFITS CONSIST IN THAT THE DONOR CAN DISCOUNT 50% OF THE DONATION, FROM THE TAX BASE OF THE INCOME TAX, AND AT THE TIME, THE REMAINING 50%, CAN DISCOUNT IT DIRECTLY FROM THE INCOME TAX TO BE PAID, ALL OF IT, WITH A LIMIT OF 2% OF THE TAXABLE BASE OF THE INCOME TAX, OR OF 20,000 UNIDADES TRIBUTARIAS MENSUALES (UTM), OR OF 5% OF THE TAXABLE LIQUID INCOME, AND AMONG THEM, WHICHEVER IS LESS. IN THE CASE OF FIRST CATEGORY TAXPAYERS, THEY CAN DISCOUNT 50% OF THE DONATION AS AN EXPENSE. THE OTHER TAXPAYERS ONLY HAVE THE RIGHT TO CREDIT. FOR THE DONATOR, FOR HIS PART, IT IS AN INCOME NOT TAXED WITH INCOME TAX AND THAT IS NOT DECLARED FOR THIS CONCEPT, AND EXEMPT FROM TAX ON DONATIONS. FOR DONORS AND DONORS, IT IS A DONATION EXEMPT FROM THE PROCESS OF INSINUATION OF DONATIONS.

What are the results achieved so far through the implementation of the policy/measure?: 

ATRICE 20 OF LAW NO. 20.675 THAT "MODIFIES THE LAW ON DONATIONS FOR CULTURAL PURPOSES, CONTAINED IN ARTICLE 8 OF LAW NO. 18,985", ESTABLISHES THAT AS INFORMATION AND TRANSPARENCY MECHANISM: "BEFORE JUNE 30, EACH YEAR, THE COMMITTEE (PRIVATE DONATIONS RATER) WILL PREPARE ANNUALLY, FOR STATISTICAL AND INFORMATION PURPOSES, A REPORT THAT WILL INCLUDE IN A GENERAL WAY AND IN AGGREGATED TERMS, THE FOLLOWING INFORMATION REFERRING TO THE PREVIOUS DRAFT CALENDAR YEAR: IDENTIFICATION , INDICATING ITS PURPOSE, BUDGET, AMOUNTS EFFECTIVELY RECEIVED AND THE REGION TO WHICH THEY WERE ALLOCATED; NUMBER OF TAXPAYERS WHO HAVE MADE DONATIONS IN THE SAME PERIOD AND; TOTAL AMOUNT OF RESOURCES COMMITTED BY THE TAXPAYERS IN PROJECTS APPROVED BY THE COMMITTEE, THE REGIONS OF THE COUNTRY WHICH CONCENTRATE THE GREATEST COMMITMENT OF RESOURCES FOR SUCH PROJECTS MUST BE INDICATED. THE REPORT TO WHICH THE PREVIOUS SECTION REFERS SHALL BE PUBLIC KNOWLEDGE, MUST BE PUBLISHED ELECTRONICALLY ON THE COMMITTEE'S WEBSITE, LATER THAN JULY 31 OF EACH YEAR".

IN COMPLIANCE WITH THE ESTABLISHED IN THIS STANDARD, THE PROJECTS PRESENTED AND APPROVED IN COMMITTEE SESSIONS, FROM THE 2014 PERIOD ONWARD, ARE LEFT AVAILABLE FOR INFORMATION PURPOSES, IN ADDED TERMS. THESE ANNUAL REPORTS CAN BE READ AT THE FOLLOWING MINCAP INSTITUTIONAL LINK: HTTP://DONACIONESCULTURALES.GOB.CL/LEY-DE-DONACIONES-CULTURALES/INFORME-ANUAL/. THE DATA PRESENTED IN EACH ANNUAL REPORT CORRESPONDS TO THE PROJECTS AND AMOUNTS EFFECTIVELY APPROVED FOR EACH PERIOD. THE RESOURCES RECEIVED (DONATIONS) CORRESPOND TO INITIAL INFORMATION THAT THE EXECUTIVE SECRETARY RECORDS BASED ON THE CERTIFICATES OF DONATIONS THAT THE BENEFICIARIES DECLARE UP TO THE MOMENT THE REPORT IS GENERATED.

Financial resources allocated to the policy/measure in USD: 

AS OF 2019, AND ACCORDING TO THE FINAL REPORT AVAILABLE ON THE INSTITUTIONAL SITE OF THE MINCAP, THE PROJECTS APPROVED CORRESPOND TO 454 CULTURAL INITIATIVES AND CLP$70.857.898.072.-/ USD$90.893.567.- HTTP://DONACIONESCULTURALES.GOB.CL/WP/WP-CONTENT/UPLOADS/2015/07/20200421_INFORME_ANUAL_JUNIO.V02.PDF

Partner(s) engaged in the implementation of the measure: 
Name of partnerType of entity
MINCAP THROUGH THE EXECUTIVE SECRETARIAT FOR PRIVATE CULTURAL DONATIONS.
Public Sector
Has the implementation of the policy/measure been evaluated?: 
NO
If yes, what are the main conclusions/recommendations?: 

TRANSITORY ARTICLE NO. 3 OF LAW NO. 20,675 THAT "MODIFIES THE LAW ON DONATIONS FOR CULTURAL PURPOSES, CONTAINED IN ARTICLE 8 OF LAW NO. 18,985", ESTABLISHED THAT: "DURING THE FIRST QUARTER OF THE YEAR 2017, THE MINISTRY OF CULTURES, ARTS AND HERITAGE SHOULD ENGAGE INDEPENDENT EXPERTS TO CARRY OUT AN EVALUATION OF THE PRESENT LAW AS AN INSTRUMENT OF PROMOTION FOR THE CARRYING OUT OF CULTURAL ACTIVITIES. ADDITIONALLY, THE INTERNAL REVENUE SERVICE (SII) SHALL PREPARE A COMPLETE REPORT ON THE USE OF THE FRANCHISE FOR CULTURAL DONATIONS, INCLUDING ALL DONORS, DONATORS, AMOUNTS INVOLVED, AND A SUMMARY ON ALL THE EVALUATIONS, EVALUATIONS AND EVALUATIONS PROCESSES INCLUDED. TAXES. THIS REPORT SHOULD BE SENT TO THE COMMITTEES OF FINANCE AND EDUCATION, SPORTS AND RECREATION OF THE HOUSE OF DEPUTIES, AND OF FINANCE AND EDUCATION, CULTURE, SCIENCE AND TECHNOLOGY OF THE SENATE. IN THE STUDY MENTIONED IN THE FIRST SECTION, AT LEAST AN ANALYSIS OF THE EFFECT OR IMPACT THAT THE PRESENT LAW HAS HAD ON THE CREATION OF NEW INITIATIVES AND PROJECTS, AND THE QUALITY OF THE SAME, AS WELL AS ON THE DEVELOPMENT THE INSTITUTIONS ALREADY EXISTING AT THE DATE OF ENTRY INTO EFFECT OF THIS LAW, MAINLY, IN TERMS OF IMPACT ON COMMUNITIES AND ON SOCIETY, AND ENCOURAGING THE DEVELOPMENT OF MORE AND BETTER CULTURAL INITIATIVES. THE MENTIONED STUDY SHOULD INCLUDE, IN ADDITION, IN A GENERAL WAY AND IN AGGREGATE TERMS, THE SAME INFORMATION AS REFERRED TO IN ARTICLE 12 OF THIS LAW. BOTH STUDIES WILL BE OF PUBLIC KNOWLEDGE, MUST BE PUBLISHED IN ELECTRONIC OR DIGITAL FORM BEFORE AUGUST 31, 2017 AND SENT, ON THE SAME DATE, TO THE FINANCE AND EDUCATION COMMITTEES, SPORTS AND RECREATION OF THE CHAMBER OF DEPUTY FINANCE AND EDUCATION, CULTURE, SCIENCE AND TECHNOLOGY OF THE SENATE. THE FOREGOING IS WITHOUT PREJUDICE OF THE EVALUATIONS THAT THE COMPETENT AUTHORITIES PERFORM ANNUALLY REGARDING THE USE OF THIS LAW BY THE PRIVATE SECTOR, WHICH WILL BE PUBLICLY KNOWN, MUST BE PUBLISHED ELECTRONICALLY WITHIN THE FIRST SEMESTER OF EACH YEAR".

THE "EVALUATION STUDY OF THE DONATIONS FOR CULTURAL PURPOSES LAW", WHOSE PREPARATION WAS REQUESTED BY MINCAP IN COMPLIANCE WITH THE STATED STANDARD, CAN BE READ AT: HTTP://DONACIONESCULTURALES.GOB.CL/LEY-DE-DONACIONES-CULTURALES/ESTIO-DONACIONES-CULTURALES/ -2017-LAW-OF-CULTURAL-DONATIONS /

Objetivo(s) de la Convención 2005 de la UNESCO
Cultural Domain(s)
Multi-dominio