Reconstruction Law: What It Contains and Which Decisions It Opens for Your Company

On 4 August 2026 the Senate approved the joint-committee report and Congress dispatched the bill to the Executive. What remains before publication is procedural, but it controls the timing of every deadline in the law.

• The last pending point was the fiscal compensation to municipalities for the property-tax exemption: the Treasury covers the lost revenue and municipalities must show at least a 30% cut in permit-processing times to access it. The Chamber approved the report on 22 July and the Senate ratified it on 4 August (27-22), which dispatched the reform from Congress.
• On 5 August 2026 the Executive filed three suppressive vetoes: on compound interest (anatocismo), the financial right to be forgotten, and the new 30-day supplier-payment regime for smaller companies. The Chamber approved the three on Monday 10 August (75-59 on anatocismo, 75-58 on the financial right to be forgotten, 74-50 on 30-day payment) and the Senate did the same on Wednesday 12 August (24-18, 23-15 and 20-17 in a second vote). With both approvals, the three rules are definitively out of the final text.
• The opposition filed three challenges before the Constitutional Court, against the tax invariability regime and the compensation tied to the judicial annulment of an environmental permit (RCA). The Court consolidated the cases under Case No. 17828-26-CPT, held the public hearing on 12 August with 56 presenters, heard oral arguments on 13 August and resolved them that same day, accepting the filings only in part: it upheld the core of the tax invariability regime, struck the RCA-annulment compensation and trimmed some extensions of the text. The constitutional organic provisions also go through mandatory preventive review.
• The Executive filed its own challenge on 11 August, against Article 31 on free reconnection of basic services after a catastrophe. On 25 August the Court rejected it, nine votes to one: the provision stands, and utilities must reconnect residential users and small businesses free of charge (electricity and gas within 48 hours, water within 24), even if service had been cut for non-payment.
• Publication in the Official Gazette has no set date, but with both challenges resolved the calendar points to September: what remains is the drafting of the rulings, the preventive review and enactment. The time-limited windows were never challenged and arrive intact at this final stretch.
• Every window is triggered by publication, not by approval. The current period is therefore for preparing decisions: quantifying, valuing and modeling, so that the deadline runs against a plan and not against a blank page.

Those deadlines matter because the heart of the package for owners is three one-time opportunities.

Alongside the windows, the law changes the permanent tax burden of the general regime.

The corporate tax of the general regime (article 14 A) falls in three steps, with provisional monthly payments adjusting in parallel. The SME regime of article 14 D does not change.

The credit is assigned by the year the profit was generated, not the year it is withdrawn. Profits accumulated through the close of 2026 keep the current rules even if withdrawn years later, and the law orders them consumed first. Waiting therefore improves future profits, not the historical stock: for the stock, the tool is the 10% substitute tax. From 1 January 2027, capital gains on shares with stock-market presence also leave the single 10% tax and return to non-taxable income status, and a new credit rewards exporters of knowledge-based services.

The detail of the schedule, the credit mechanics and what to model before deciding in 2026 are covered in the corporate tax cut page.

The law does not stop at taxes: it also rewrites rules that touch daily operations.

1. Public procurement: faster State payment

   In State purchases the exceptional payment term falls from 60 to 45 days and formal acceptance must occur within 8 calendar days. The general rule requiring payment within 30 days between private parties, which the bill carried, was dropped from the final text by the approved veto (see below), so Law 21.131 continues to govern there.

2. SENCE training credit falls to 0,7%

   The training credit falls from 1% to 0,7% of payroll, with an employer co-payment scaled to the worker's pay: coverage of up to 80% for wages up to 25 UTM, 50% between 25 and 50 UTM, and 15% above 50 UTM. The co-payment cannot be passed on to the worker.

3. Municipal debt relief

   Municipal debts (licenses, fees, waste charges of the 3 years before 2026) qualify for full relief of interest and fines, on request within 12 months. Note the limit: the parallel Treasury program for national taxes (180-day relief) applies only to individuals and smaller companies.

Just as important as what the law contains is what it dropped along the way or still hangs on a court ruling.

• Universal childcare was removed from the text: the approved law contains no such obligation or benefit.
• Three operating rules were removed from the final text by the suppressive vetoes Congress approved on 12 August 2026: the ban on compound interest (anatocismo), the financial right to be forgotten (erasure of old debt data), and the ban on agreeing payment terms beyond 30 days. None of the three will take effect with this law.
• The tax invariability regime for investments of USD 50 million or more survived the Constitutional Court in its core, but the ruling of 13 August 2026 struck some of its extensions, among them the Finance Ministry's power to expand deadlines and the reach to related projects. Our guide to the new tax stability agreements examines the full regime for investors.
• The compensation for judicially annulled environmental permits (RCA) was declared unconstitutional and is out of the law. The broader reform of permits and environmental assessment is a chapter of its own and will be covered separately.

The questions below gather the doubts that come up most often when a company and its owners review the package.

Informational content, updated as of August 2026. It does not constitute legal advice for a specific case.