This 2024 will be a particularly challenging year in legal and regulatory terms for companies, highlighting the tax, labor, technological, sustainability and compliance areas.
In tax matters, the year will undoubtedly be marked by the challenges associated with the new Fiscal Pact. Chile today is experiencing significant uncertainty given how extensive this debate has been and the constant changes in tax matters that we have had at least in the last decade. Among the main changes being discussed are the burden of personal taxes on salaries, which will mean a significant cost for companies; the dividend withholding tax, among others. It is to be hoped that this new fiscal pact will provide companies with the security they expect.
Regarding legal challenges in the technological field, the focus will be on the implementation of the Fintech Law, the regulation on cybersecurity, artificial intelligence and progress in the final discussion of the Law on Protection of Personal Data. All of the above highlights the need to advance at the level of corporate culture, prevention models and the new guiding principles that must be present in the processing of personal data.
In the area of compliance, the Economic Crimes Law comes into force, which modifies various legal bodies that classify crimes against the socioeconomic order, and adapts the penalties applicable to all of them. This regulation establishes a considerable expansion in the catalog of crimes for which the legal entity may be responsible and toughens the penalties. In this context, it is key that companies and organizations actively work on updating their policies and controls.
In labor regulation, companies will be exposed to various challenges, such as the application of the 40 Hour Law and the Karin Law, which strengthens regulations regarding prevention, investigation and punishment of workplace, sexual harassment and violence at work. Companies will have to adapt and work to modify their internal regulations and create prevention policies.
Finally, in terms of sustainable operations, the progressive entry into force of the so-called REP Law continues to advance, which aims to reduce the generation of waste and promote its reuse, recycling and other types of recovery. This regulation represents a series of challenges for companies: they must report their progress in waste collection, recovery and disposal activities; improve its facilities to scale waste recycling and implement new technologies that will allow the objectives to be achieved.
Without a doubt, 2024 appears to be a particularly challenging year in legal and regulatory terms for companies and their corporate governments. For this reason, I recommend working, getting ahead and continuing to prepare ourselves in the active management of the legal risks imposed on us by this new and demanding regulatory environment.
By Rodrigo Albagli, lawyer and managing partner of Albagli Zaliasnik.
