• A one-time, transitional 50% reduction of the gift tax is proposed to encourage early gifting or succession planning.
• It is exempt from the judicial authorization requirement (insinuación judicial) is waived. Donations must be executed by means of a public deed signed within one year from the first day of the month following the publication of the law.
• In addition, the donor must submit an affidavit certifying compliance with the requirements. This affidavit must be filed with the Chilean Tax Authority in the manner and within the timeframe established by the Chilean Tax Authority in a resolution.
• To qualify for this benefit, at least 50% of the donated amount must be allocated to the donor’s statutory heirs (i.e., their mandatory heirs, such as children or a spouse) and at least 25% to the beneficiaries of the cuarta de mejoras (persons whom the donor may specifically benefit within their family circle). The remaining 25% may only be allocated to these same individuals, in the proportion determined by the donor. Donations to third parties will not qualify for the reduction.
  
  In no case may the value of the donation exceed 75% of the donor’s total estate.
• For the calculation of credits against future inheritances, the amount of tax that would have been due without the 50% reduction shall be considered paid; that is, it may be credited at 100% against the inheritance tax. 
• Gifts between spouses made under this regime will be deemed irrevocable and will therefore be subject to the gift tax.
• The donee may finance the gift tax through loans granted by public deed or promissory notes authorized before a notary, issued by the companies whose equity interests or shares are being donated or by other related companies, without the penalty tax established in Article 21 of the Income Tax Law being applicable.
• If the donee disposes of the donated asset within 3 years from the date of the deed of gift, the tax cost of such assets shall correspond to the cost the donor would have had, in accordance with general rules.

Effective date: second month following the publication of the law, for a period of 12 months.