Invest in Arica 2014 by CORPORACION DE DESARROLLO DE ARICA Y PARINACOTA

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Cruz de Mayo (Cross of May), tangible evidence of religious syncretism in the Andean world.

Pelican or Huajache in Fishermen Cove.

Cover: One of the earliest methods of trading in the zone represented in countless rock art icons. Made by: CORDAP Photography: Francisco ManrĂquez

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CORPORACIĂ&#x201C;N DE DESARROLLO DE ARICA Y PARINACOTA The Arica and Parinacota Development Corporation is non-profit institution, created by law NÂ° 19.669 (Arica II law), with the main objective of encourage the progress of the provinces of Arica and Parinacota, to serve as an advisory association on public investment and policy decisions, and to evaluate the advance of enacted development measures. The corporation acts as a coordinating 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 Malebran, president of the Association of Industrial Workers of Arica.

GOBIERNO REGIONAL DE ARICA Y PARINACOTA Mission: To maximize the long term growth potential of the economy, and to promote a better use of the productive resources of the country, in order to reach a sustainable economic growth that includes a better quality of life for every Chilean, especially from the most vulnerable sectors. Strategic objectives: To responsibly administrate fiscal policy, according to the macroeconomic context, in order to promote the long term growth potential, also contributing to the improvement of quality of life of Chilean people, especially from the most vulnerable sectors. To design and support legal initiatives, that allow maximizing the economic growth rates, according to the goals of the government. To focus in the opening of financial markets promoting the financial integration of the country with international markets. To coordinate organizations and entities that depend on the Treasury Department, to maximize its contribution to the economic growth of the country.

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PROCHILE ProChile is an institution dependant on the Ministry of Foreign Affairs, and its role is to promote the exportation of goods and services. In addition, it contributes stimulating the foreign investment in Chile and in Chilean tourism. ProChile has a network of 50 commercial offices all 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 tools in their management abroad.

ZONA FRANCA DE 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 of its creation, these are the reasons of its establishment: - To promote development of the most distant zones of the country - To reinforce geopolitical sovereignty with the neighboring countries - To contribute the economical growth with entrepreneursâ&#x20AC;&#x2122; incentives, due to the high tariff rates back in those years Currently, Zofri S.A is recognized as a logistics and commerce system of international excellence. Zofriâ&#x20AC;&#x2122;s connectivity with the Bioceanic Corridor translates into certain comparative advantages: 3,300 kilometers (about 2,000 miles) will connect Chile-Bolivia-Brazil; Puerto de Santos (Brazil) will connect with ports from Iquique and Arica. New markets in Bolivia, Brazil, Paraguay and Peru (86 million people). Access to the main urban centers: Santa Cruz, Campo Grande, Corumba and Cuiaba. Currently, Zofri possesses 4 business unities with global selling volumes (2012) bording US$4,411 million: - Wholesale Business Center, Iquique - Shopping Center, Iquique - Logistics Center, Iquique - Industrial Park, Arica

Presentation Arica and Parinacota region is located

Law N°20,655 about distant zones of the

in the northern frontier of the Chilean

country, dictated on February 1, 2013,

territory. It is a new region, with a regional

established a list of tax advantages for

independent

2008.

a period of 12 years. These advantages

and

promote inversion and development of the

government

possesses

cultural,

since

economic

geopolitical characteristics that make this

region.

region different from others of the country.

The Arica and Parinacota Development

Due to its history and geographic location,

Corporation, along with ZOFRI S.A as a

for many years its development grew

franchisee for the administration of the

different from the national figures, despite

Industrial Free Trade Zone of Arica and the

their opportunities and resources. In

regional directive of PROCHILE have created

a country economically and politically

a Regional Committee of Promotion of

centralized as Chile, the region was not

Investment, and its first task is to promote

“visible” for the Central Zone.

the potential advantages of the region,

With the creation of the Arica and

regarding its resources, and a beneficial tax

Parinacota region, the phenomenon started

legislation.

changing:

the existence of a regional

This document is a synthesis of the

government and council, with its own public

potential advantages that the Regional

budget administration. Along with this, the

Committee of Promotion of Investment

creation of a new organized private sector,

has decided to foment.

as an economic development axis, for the future of the region is being developed.

Former Customs building, design by Gustave Eiffel, opened in 1874.

Morenada making their show in â&#x20AC;&#x153;With the Force of the Sunâ&#x20AC;? Carnival.

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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 Technical Training Institutes Hotel Accommodations and Casinos Industrial Zone of Arica Available Areas Regional Economy

Chapter II Investment opportunities in the region 2.1 Aquaculture 2.2 Agriculture 2.3 Chain of Activities 2.4 Non-conventional Renewable Energies 2.5 Logistics 2.6 Mining Services 2.7 Tourism

Chapter III Potentialities and tax advantages of the region 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9

Tax Credit to Regional Investment Industrial Free Trade Zone Workforce Hiring Bonuses Investment Bonuses: Priming Fund and Development of Distant Zones Simplified Exportation System Exportation Centers Extension Free Trade Zone Special Taxes for Residents Registration Certificate

Chapter IV Benefit Requirements and Processing 4.1 4.2 4.3 4.4 4.5 4.6

Investment Tax Credit Arica Industrial Free Trade Zone Workforce Hiring Bonuses Investment Bonuses: Priming Fund and Development of Distant Zones Simplified Exporting System Exportation Centers

Chapter V 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 20,655 report, establishing special incentives for the most distant zones of the country, regarding Arica and Parinacota region. By RaĂşl Castro Letelier, Lawyer.

Train Station Arica - La Paz, opened March 6, 1912.

CHAPTER I POTENTIALITIES AND ADVANTAGES OF THE REGION 1.1 TERRITORY AND LOCATION Arica and Parinacota is the most northern region of Chile, it is the only region that has frontiers with two countries; at North it borders with Peru, at East with Bolivia and the south borders with Tarapaca. The region has a surface of 16,873.3 km2 and 213,595 inhabitants, divided into two provinces: Arica and Parinacota. The province of Arica takes up the coastline and desert plateau, which is crossed by the fertile agricultural valley of Lluta, Azapa, Chaca and Camarones. The province is subdivided

“The whole region has a great potential development in agriculture, mining, logistics services, tourism and nonconventional energy. These sectors have been defined as the axis for regional development.”

into counties, being Arica the capital of the region, gathering the 98,7% of the total population of the region. The province of Parinacota takes up the lower part of the mountain chain and the high Andean plateau. The lower part of the Andean mountain chain has agricultural and touristic potential, with colonial towns that support the maintenance of the churches that take part of “Ruta de las Misiones” (The Mission Route). The high Andean plateau is a virgin area at 4,000 meters above sea level, with unique landscapes and auquenido grazing pastures. It is subdivided into General Lagos and Putre counties. The whole region has a great potential development in agriculture, mining, logistics services, tourism and nonconventional energy. These sectors have been defined as the axis for regional development.

The large amount of cargo movement from neighboring cities indicated in the following map:

Sunset at Chinchorro Beach.

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1.2 AIR CONNECTIVITY The city has an international airport, the “Chacalluta Airport”, located at 18.5 kilometers north of the city. The estimated travel time from the town to the airport is 20 minutes; this terminal registers 7 national flights each day destined to Santiago. Most of them are

More information: www.lan.com y www.skyairline.cl

direct, although some stopover in Iquique and Antofagasta. Flights are carried out by two airlines: LAN and SKY AIRLINE. Arica is also connected abroad by air: SKY provides one daily flight to La Paz, Bolivia and two flights per week to Arequipa, Peru. On the other hand, LAN Peru offers three daily flights to Lima, Peru from Tacna airport, 40 kilometers away from Arica.

1.3 ROAD CONNECTIVITY Arica has great road connectivity. By the eastern side of the city the 5 North Road (Panamerican Highway) connects the south American countries of the Pacific. To the north of Lluta river, from the Pan-anamerican highway the 11-CH is originated, and connects Arica with Bolivia. City

Population

Tacna Perú (1) Ilo Perú (2) Arequipa Perú (1) Alto Hospicio (3) Iquique ( 3) Antofagasta (3) Calama (3) El Alto, Bolivia (4) La Paz, Bolivia (4) Cochabamba, Bolivia (4) Santa Cruz, Bolivia (4)

298.044 63.780 925.667 94.254 183.997 346.126 138.109 1.283.349 923.741 695.226 1.811.390

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 Ávalos Avenue • Alejandro Azola Avenue • Santa María Avenue • Luis Beretta Porcel Avenue From east to west there are three double road avenues: • Renato Rocca Avenue • Diego Portales Avenue, that continues towards east by 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 2011 (2) population 2007 (3) population 2012 (4) population 2009

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1.4 RAILWAY CONNECTIVITY Arica is connected by railway with La Paz (Bolivia). The train has a cargo transportation capacity of 240,000 tons/year, and 209 kilometers of the whole track are located in the Chilean side. This train was built after the Peace Treaty of 1904 between Bolivia and Chile. There is also a train that connects Arica and 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, which could be accomplished if low investment were carried out in it.

“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.”

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). The statistics of traffic are:

Index

2010

2011

2012

Merchant ships

295

352

241

Gross tonnage

2.131.367

2.659.060

2.590.830

Source: CORDAP using EPA data base.

75% of the tonnage corresponds to cargo in movement from Bolivia, country that has a treaty (“peace and friendship treaty” between Bolivia and Chile) since 1904, which determined the boundary between the two countries, and by which Chile accorded to facilitate the free traffic of goods by 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

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1.6 UNIVERSITIES AND TECHNICAL TRAINING INSTITUTES Arica has many universities and technical training institutes, 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 Pukará CFT Tarapacá

Public University Public University Private University Private University Technical Training Institute Technical Training Institute Technical Training Institute Technical Training Institute

www.uta.cl www.unap.cl www.santotomas.cl www.inacap.cl www.santotomas.cl www.inacap.cl www.cftpukara.cl www.cfttarapaca.cl

1.7 HOTEL ACCOMODATIONS 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 and 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 some hostels. Also, the city 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

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1.8 INDUSTRIAL ZONE OF ARICA The city planning scheme of 2009 shows 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 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.

More information: http://www.dom.muniarica.cl/pag.php?id=28&tipo=html

1.9 AVAILABLE AREAS The Ministry of National Assets possesses 24 available pieces of land, which will be put out to tender to the best offer during 2013, for real estate projects and urban equipment, for a total of 72.26 hectares in the new industrial park Pampa Chacalluta. Also, there are 21 pieces of land destined to industrial and nonconventional renewable energy projects, for a total of 18.28 hectares, which will be put out to tender in the same period of time. The Ministry of National Assets has recently announced the adaptation of a new surface of 352.2 hectares in the new industrial park Pampa Chacalluta, to the east of Chacalluta Park administered by Zofri S.A, located at industrial zone 2. The plots will be put out to tender and the referential price of one hectare goes between 950 and 2,500 UF ($21,750,003 and $57,236,850), $40,000 and $120,000 in American dollars.

More information: http://www.bienesnacionales.cl/wp-content/uploads/2012/12/librobienes.pdf

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1.10 REGIONAL ECONOMY The Arica and Parinacota region possesses a thriving regional economy, that after several years of postponement, is currently showing positive figures, manifesting a great advance in the regional economy for the last couple of years, due to public investment of public policies and the development of neighboring matters, that have turned Arica into a region of services. Sources: 1 Central Bank of Chile 2 National Institute of Statistics, 3 Internal Revenue Services, 4 Aricaâ&#x20AC;&#x2122;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

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)

2011 October-December 2012 October-December 2012 October-December 2012 October-December 2012 2011 2011 2012 June 2012 2013 2012

$ 595.709 millions 137.2 82,627 78,023 5.6 % 13,906 UF 50,151,135.5 2,590,830 Ton. $ 521,966 $ 30,000,000 $ 258,071,959,000

Law NÂ°20,655 about distant zones: a recently promulgated law that will thrust private investment in the region, strengthening the growing tendency. The tax advantages of the regional investment, coming from this and other laws, are detailed on the second part of this document.

Troupe of dancers at carnival â&#x20AC;&#x153;With the power of the sunâ&#x20AC;?.

Flamingo or Andean flamingo in Lluta estuary.

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Chapter II INVESTMENT OPORTUNITIES IN THE REGION 2.1 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 a large marine surface. Currently, 13 maritime concessions have been given or are being processed at the south of Arica. Nevertheless, this activity is new, but it opens opportunities to develop associations and strategic alliances. 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 breeding in other regions of the country. • Mild climate, absence of rough water and storms. 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/ Miscellaneous relevant information • The Arica and Parinacota Development Corporation presented the project “Breeding of the Northern Pacific oyster”. The experimental phase turned out with positive results, proving to be a possible and profitable initiative. • There are marine products processing plants with experience regarding exportation to EU, USA, Japan and Australia, among others. • There are already assigned and available concessions in the region.

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2.2 AGRICULTURE IN ARICA AND PARINACOTA REGION Description The Arica and Parinacota region is characterized by having 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 farm workers to carry out their activities through the whole year. Regional agriculture is characterized by high-tech levels using drip irrigation and greenhouses with anti-aphid nets, allowing a high production in

“The Lluta Valley is a zone of farming and agricultural exploitation, specially corn, onions and garlic. On the other hand, the main products grown in the Azapa valley are olives, tomatoes, peppers and green beans. Besides, many seed companies have settled in the area, such as Pioneer, Maraseed and Syngenta.“

the valleys of Azapa and Lluta. The Lluta Valley is a zone of farming and agricultural exploitation, specially corn, onions and garlic. On the other hand, the main products grown in the Azapa valley are olives, tomatoes, peppers and green beans. Besides, many seed companies have settled in the area, such as Pioneer, Maraseed and Syngenta. There are projects that will sustain the agricultural development of the region, such as the culverting 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. The province of Parinacota has agricultural valleys in the lower zones of the Andean mountain range in Belen, Socoroma, Chapiquilla, Lupica, Saxamar and Ticnamar, among others, and they offer products such as oregano and quinoa; products of high international demand. It is important to mention, that in the agriculture of Parinacota, due to the altitude of the ground (2,500 meters above sea level), practically, there are no plagues, allowing the development of an organic agriculture.

Potential Market The main goal for the regional products is the national market. Arica supplies the Central Zone of the country during winter, when vegetables are scarce. Also, exportation of olives, onions and garlic is carried out to Brazil. Opportunities • To supply the Central Zone demand during winter season • High efficiency agriculture • Investment projects that will allow an improvement in the water use.

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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/ Miscellaneous relevant information • Recently, the project Pampa Concordia has been put out to tender, with the aim of setting up 1,050 hectares to grow tomatoes, peppers and lettuce, among others. • The hydric management planhas an estimated investment cost of US$ 250 million dollars; 97% of the cost is destined for infrastructure. The priority is to increase the amount of available resources, implementing water reservoirs and the culverting of the Azapa waterway. Thus, the plan contemplates a size increase of the irrigated area, due to the treated water from the city, and to the water from the Concordia aquifer.

“The project suggests that entrepreneurs from other countries, that we will denominate “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. “

2.3 CHAIN OF ACTIVITIES IN ARICA AND PARINACOTA REGION Description The concept applies to the connection of goods and services with other countries, which having a minimal transformation process in Chile, are subsequently exported to markets in which Chile has benefits. This initiative has become relevant in Asian markets, where tariffs are high, but Chile is exempted from paying due to the commercial agreements, which translates into an important competitive advantage. The project suggests that entrepreneurs from other countries, that we will denominate “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. This project grins up multiple advantages, such as an increase in the exportation volume and 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 countries that possess commercial treaties or free trade agreements with Chile

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Opportunities • Geographic location of Arica • Proximity with 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.

Related webpages (public entities, local information) • Customs www.aduana.cl • Zofri www.zofri.cl • Ministry of International Affairs www.direcon.gob.cl

Other relevant information • There are Bolivian companies that import wood and Bolivian furniture, which are exported to different countries. • Anchovy fillets companies, KYC Seafoods Ltda. and Agropesca S.A. import raw materials semi elaborated from Peru, and in Arica plants can anchovies to export them to the United States, Europe and Australia.

2.4 NONCONVENTIONAL RENEWABLE ENERGY IN ARICA AND PARINACOTA REGION Description Nonconventional renewable energy (NCRE) is obtained through inexhaustible natural sources, such as the sun, wind or the sea, being transformed into electricity. The Arica and Parinacota region has unique conditions, a high solar radiation of 3,000 KWH/m2/year, and available zones for the installation of PV power plants. Wind power is another of the NCRE that can be developed due to the climate advantages of the zone. Nevertheless, it has not been carried out 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 Mojave Desert.

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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 2020, 20% of the Chilean energy supply will be composed by renewable energies, thus, 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 25 land applications 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, specially 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. • Plants have social acceptance, due to their non-contaminant condition.

Related web pages (public entities, local information) • Ministry of National Assets www.bienesnacionales.cl • Ministry of Energy www.minenergia.cl • Ministry of the Environment www.mma.gob.cl • National Commission of Energy www.cne.cl • Center of Renewable Energies www.cer.gob.cl

Miscellaneous relevant information • 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 carried out by Mainstream Renewable Power companies, 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.

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• By the end of the first semester of 2013, El Aguila plant will begin functioning. With 2 MW of power, the plant will be connected to SING trough a substation, property of E-CL, which will allow covering a 30% of the energetic requirements of the operations from El Aguila, which belongs to Quiborax S.A.

“Arica and Parinacota is located in a strategic zone. Because of its characteristics, it meets the logistics needs of markets that require port, transportation and storage services.“

2.5 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 west center of Brazil and northeast of Argentina. Arica and Parinacota is located in a strategic zone. Because of its characteristics, it meets the logistics needs of markets that require port, transportation and storage services. The port of Arica is one of the main terminals of Chile, which has had an important growing because of the great volume of Bolivian cargoes. Chile leads the South American logistics efficiency ranking, which makes it even more interesting to invest in this initiative, considering the great development of mining industries.

Potential market: It is strongly oriented towards international markets. Opportunities • To promote exportation of services. • Lack of specialized industries in particular cargoes. • To increase regional competition.

Related webpages (public entities, local information) • Arica’s port enterprises www.puertoarica.cl • Arica’s port terminal www.tpa.cl

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Miscellaneous relevant information A large increase in the cargo movement in the port of Arica has occurred during 2012, moving 2,590,830 tons. A 75% of this volume corresponds to Bolivian cargo, a 15% corresponds to Chilean cargo, a 4% to Peruvian cargo, and the rest belongs to other countries. The implementation of an Interoceanic Corridor that will connect de Mato Grosso zone in Brazil with Arica

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“The establishment of the facilities will need support services for the development of the activity, such as assembly services, engineering, construction, logistics, transportation, feeding, metallurgy, etc. “

2.6 MINING INDUSTRY SERVICES Description Mining industry is a very important foundation for the development of the region. Currently, there are several mining projects on the run. Although, there are projects already starting to function, the mining companies (nationals and transnationals) show great interest due to the potential offered by the high zone of the Andean mountain chain. Thus, the establishment of mining industries in the region, especially in Parinacota and Camarones, is imminent. The establishment of the facilities will need support services for the development of the activity, such as assembly services, engineering, construction, logistics, transportation, feeding, metallurgy, etc. it is an interesting opportunity of service supply for the mining companies installed in the region or even, in adjacent regions, such as Tarapaca, Antofagasta and the south of Peru, due to the geographical advantages of the region.

Potential Market There is a potential market soon to be open by the service companies for mining industries, due to the government policies that have turned mining into an axis of development for the region, besides the already existing market of Tarapaca, Antofagasta and the south of Peru. Opportunities • New market • Scarce offer of mining services in the region • Previous preparation for service demand

Related webpages (public entities, local information ) • Ministry of Mining www.minmineria.gob.cl • Ministry of National Assets www.bienesnacionales.cl • Ministry of Energy www.minenergia.cl • Ministry of Environment www.mma.gob.cl

Miscellaneous relevant information • 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 biggest producer in the world.

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• 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 opening of the mining site Choquelimpie, a project that includes an investment of US$600 million. Tailings will be 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 project Los Pumas, which belongs to Hemisferio Sur Mining Company (MHS), expects a manganese production of 220,000tons. per month. The project is currently under SEIA evaluation. • The Southern Cooper Corporation is in the middle of an exploring process for its Catanave project. • The company Minera Rio Tinto is in the middle of an exploring process for its Mamuta project in Camarones, and Palmani in Alto Lluta.

“The region possesses great archaeological sites for tourism, such as Chinchorro culture with mummies from 10,000 years B.C and geoglyphs and petroglyphs in Arica and Lluta valleys.“

2.7 TOURISM IN ARICA AND PARINACOTA Description The Arica and Parinacota region is located in the northern border of the country. Arica County is known as “the city of eternal spring”, because of its friendly weather and great beaches, which can be visited during whole 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 sites for tourism, such as Chinchorro culture with mummies from 10,000 years B.C and geoglyphs and petroglyphs in Arica and Lluta valleys. These valleys posses an incalculable beauty; the arid desert mixes with the green of the fertile valleys. In Parinacota, people can see the Andes mountain range, where there is also the Chungara lake, the highest in the world located at 4,517 meters above sea level, and diverse villages in the foot hills, 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 characteristics of Arica are its pleasant climate and the mild temperatures of the ocean, which allow practicing water sports, such as surfing and body boarding. Arica is located in a halfway point between Machu Pichu and San Pedro de Atacama, close

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to Tiwanaku as well, a renowned archaeological site strategically located as a resting city for travelers. 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. • 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, Bolivia and Peru. There is also, an indirect connection with Peru, through Tacna Airport.

Related web pages (public entities and local information) • National Service of Tourism www.sernatur.cl • Visit Arica www.visitarica.cl

Miscellaneous relevant information • Sernatur carried out, along with Arturo Prat University, a conservation project with ecotouristic value for the green turtles that are located in the coastal borderline of Chinchorro beach, in Puntilla, which will become an important touristic attraction. • There is a project of restoration for 30 churches in the Andean foothills. The churches were built between the centuries XVII and XVIII and the restoration is carried out by Fundacion Altiplano, and it is called “Ruta de las Misiones”. The idea is to generate a touristic route through the foot hill villages, visiting the pre-Columbian churches of the area. • The Andean Carnival “INTI CH’ AMAMPI” gathers over 7,000 dancers who during three days dance through the streets of the city with colorful costumes. • The international championship of surfing, in the wave named “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.

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“The region possesses great archaeological sites for tourism, such as Chinchorro culture with mummies from 10,000 years B.C and geoglyphs and petroglyphs in Arica and Lluta valleys.“

2.8 EXTREME ZONE SPECIAL PLAN Characterization Arica and Parinacota region has a Special Strategic Development Plan, in the context of a spatial plan defined by the Chilean Government for Extreme Zones of the country. It aims to provide the region with the public infrastructure required for the sustainable development economic and social, through public investments of US$1,000 million over six years. This Strategic Plan gives great importance to the creation of a high-logistic sector where the port, airport and industrial areas intertwine together to create a logistic zone that will allow Arica to become in the Gateway to Asia Pacific. The projects included in this plan are: Initiative Road Connectivity Educational Infrastructure plan Old Town Recovery Neighborhood Development Plan Centennial Park Encounter Park Sector “El Alto” Urbanization Heritage Building Restoration Social Housing Construction Land Purchase for social housing Inherited Ordering Plan Town Building Construction Northern Industrial Park Rural Electrification Independent Slaughterhouse Community Health Services Program Landfill Construction Copaquilla Polimetallic Remediation Study Olimpic Swimming Pool Design and Repair High Performance Center Height Seaboard Walk Productive Cove Quiane Livílcar Reservoir Chironta Reservoir Umirpa Reservoir Situation Study of Water Shortage Feasibility Study and Zoning Port Museum Chinchorro Construction Extreme Zone Tourism Plan Regional Strengthening Municipality Strengthening TOTAL

Million Chilean $

US $

70000 50000 9261 13000 4300 4447 2800 10661 151930 15190 10250 14000 5600 2834 3500 7000 3500 190 3500 5250 26600 400 40000 48000 13972 500 1250 26000 2000 1167 1167 548.269

127674554 91196110 16891343 23710989 7842865 8110982 5106982 19444835 277108500 27705378 18695203 25534911 10213964 5168996 6383728 12767455 6383728 346545 6383728 9575592 48516330 729569 72956888 87548266 25483841 911961 2279903 47421977 3647844 2128517 2128517 1000000000

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Potential Market Cover the needs that will be generated through the design, engineering study and implementation of works that includes the Special Plan of Strategic Development. Opportunities - Building and Engineering Companies - Architectures Companies - Specialized Companies on Consulting and Studies of Soil, etc. Other Information It has been nominated a responsible manager for the successful achievement of this Strategic Development Plan for Arica and Parinacota. He works for the Regional Government of Arica and Parinacota and he is a Mayorâ&#x20AC;&#x2122;s adviser about this matter and the person in charge of the coordination of different regional address involved in the design and execution of the works.

Alpaca in the wetlands of Parinacota.

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CHAPTER III POTENTIALITIES AND TAX ADVANTAGES OF THE REGION 3.1 TAX CREDIT TO REGIONAL INVESTMENT The tax credit to regional investment is an incentive for the first category taxpayers that invest over 5000 UTM in Arica or Parinacota. The investment is destined for the production of goods or services. There is no upper limit for the investment; therefore, there is no limit for the tax credit. The benefit is automatic (does not require application) and it corresponds to a 30 or 40% of the investment. Arica investors have the right to a 30% of credit for 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 amount of the credit is equal or higher than the average of the first category tax determined for the last three years, the compulsory monthly payment (PPM) could be completely suspended. It is important to remark 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 recovery speed for national companies already established that also have 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 devolution 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 be implemented until year 2045.

More information: http://www.sii.cl/contribuyentes/actividades_especiales/zonas_extremas.htm#arica http://www.leychile.cl/Navegar?idNorma=30787

1 UTM= US$ 70,47 At September 30, 2014 Tax Credit Arica Act • Taxpayers are allowed to claim this benefit since January 1, 2012 until December 31, 2025 and the Credit recovery entitled can be made until 2045. • The credit rate for industrial projects or services is: 30% to Arica, 40% to Parinacota and 40% to touristic projects, calculated on the new depreciable fixed assets net value. • Minimum investment 500 UTM • No contest. • Might be used to pay income tax 1st class. • The paid income tax generates the Tax Credit 1st Class that will reduce the Complementary or earnings distributions.

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3.2 INDUSTRIAL FREE TRADE ZONE The manufacturing industrial companies installed in Arica enjoy the benefit of the preferential tax regime established by 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 is also applicable to the companies that during their productive process cause an irreversible transformation in foreign raw materials, parts or pieces used in the manufacturing process, that add value to the final product. Raw materials, pieces and parts that are imported to be incorporated into the final product are exempted from paying some taxes, fees, custom burdens 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 burdens (including clearance fees) when transported to the rest of the country. The companies that are users of the Industrial Free Zone have the benefit that, when they buy raw material and necessary products for the industrial process in local business (Arica), they are not liable to pay taxes on these inputs purchase (VAT). 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

Industrial Free Zone • Purchases exempted of VAT and fee. • Purchases exepmted of VAT. • Utilities exempted of income tax 1st class. • Valid until December 31, 2030.

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3.3 WORKFORCE HIRING BONUSES Monthly bonuses handed over to the employers of Arica and Parinacota for workforce hiring and the payment of the consequent taxes. The bonuses correspond to a 17% of $182,000 ($30,940), a standard value which is adjusted every January 1st according to the CPI of the year. Workers that are partners or owners, and direct relatives are excluded from the benefit. The employers from these sectors are also excluded:

Workforce bonus DL.889 • A 17% bonus on a taxable base of $182,000 given to workforce hiring, which equals $30,490 per worker • The benefit is effective from January 1st of 2012 until December 31, 2025.

The public sector, small and medium-scale copper and iron enterprises, companies in which the state of 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, deductive fishing, pension funds administrators, private health insurance companies, currency exchange agencies, insurance brokerage firms, employers that receive bonuses 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. More information: http://www.sii.cl/pagina/jurisprudencia/adminis/2003/renta/ja509.htm http://www.tesoreria.cl/web/Contenido/Documentos/3770/guia_egresos.pdf

3.4 INVESTMENT BONUSES: PRIMING FUND AND DEVELOPMENT OF DISTANT ZONES The bonuses are 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 transportation vehicles for more than 14 passengers. The maximum allowable bonuses correspond to a 20% of the investment or 50,000 UF (indexation unit, 1 UF is equivalent to $22,800 or US$45), and as a requirement, the beneficiary annual sales cannot exceed 40,000 UF. This benefit has been extended until December 31, 2025. More information: http://www.leychile.cl/Navegar?idNorma=3941 http://www.corfo.cl/programas-y-concursos/programas/dfl-15-bonificacion-acompra-de-bienes-de-capital-para-zonas-extremas

Investment Bonus DFL/15 • A 20% Investment/reinvestment bonus on depreciable fixed assets • Bonus rate of 20% of the new/first fixed assets value in the country • Applicant requirements: Maximum investment of 40,000 UF; sales must’s exceed 50,000 UF • Grant fund • The benefit is effective from 2012 to 2025

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3.5 SIMPLIFIED EXPORTING SYSTEM (also known as VAT refund for tourists) When leaving the country, crossing the customs 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 the custom. The minimum purchase is 0.5 UTM (US$40). The tourist will be able to ask for a refund of 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. More information: http://www.sii.cl/documentos/resoluciones/2009/reso67.htm http://www.sii.cl/documentos/circulares/2009/circu33.htm

3.6 EXPORTATION 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 Aricaâ&#x20AC;&#x2122;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 http://www.leychile.cl/Navegar?idNorma=30787

3.7 EXTENSION FREE TRADE ZONE Iquique Free Zone, established by Decree with Law Force N° 341 in 1975, determined that everyone of Tarapacá Region (which then included Arica and Iquique), whether natural or legal persons (companies) can buy for use and / or consumption goods that are to sale within the precincts of the Free Zone (ZOFRI), will be extent of the VAT (IVA payment). The concept of Extension Free Zone it’s defined by every territory that was in the Tarapaca Region, outside the walled city of Iquique ZOFRI. With the creation of XV Region of Arica and Parinacota, October 8th, 2007, was split from the former Tarapacá Region and it keep fully the benefit of been Extension Free Zone. The companies’ benefits that are in Arica, by the fact of being located in Extension Free Zone, allows them to buy in the Commercial Free Zone, every kind of free merchandise of the Aggregate Value Tax, they also can access to be Commercial Free Zone users, in the form of Public Warehouse (without storage or market in Iquique), which leads to the realization of a hybrid business model (general regime and free trade zone regime), and can use both tax regimes. The costs associated to access to be users of the Commercial Free Zone or others inquiries can be address to the following emails: Aclientes@zofri.cl / Zofriarica@zofri.cl More information: http://www.leychile.cl/Navegar?idNorma=30787

3.8 SPECIAL TAXES FOR RESIDENTS The residents of Arica and Parinacota enjoy a “regional bonus” consisting on a reduction of the tax base in which the calculation of the Income Tax and the Global Complementary Tax are 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 $546.953, ie, $306,294 monthly income untaxed. More Information: http://www.leychile.cl/Navegar?idNorma=5904 http://www.sii.cl/documentos/circulares/1976/circu10a.htm

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3.9 REGISTRATION CERTIFICATE The Arica and Parinacota region has others benefits for the people of the region: the Article 13 of the Municipal Income Act reduces a 50% of the annual vehicle appraised value fixed by the Internal Revenue Service (IRS), the registration certificate is calculated over this value. This benefit only applies to the 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. Appendix 2 includes a report on the extent of the Law for End Regions to the Arica and Parinacota Region, made by the attonery Mr. RaĂşl Castro Letelier

More Information: http://www.sii.cl/pagina/jurisprudencia/legislacion/complementaria/ley_3063a.htm

Reconstruction of churches in the Andean foothills.

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CHAPTER IV BENEFITS REQUIREMENTS AND PROCESSING 4.1 INVESTMENT TAX CREDIT

Benefit Name

INVESTMENT TAX CREDIT

Institution

Arica and Parinacota Internal Revenue Service Address: Arturo Prat N° 305, Arica Phone: 56-58-2587000 www.sii.cl

Requirements

• To have started operations. • To be a taxpayer affected by the First Class of the Tax Act Income. • To take full accounts. • The minimum investment is 500 UTM

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 the outreach. • Production or services capabilities today. • 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.

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4.2 ARICA INDUSTRIAL FREE TRADE ZONE

Benefit Name

ARICA INDUSTRIAL FREE ZONE

Institution

Arica Industrial Free 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

•To be First Class taxpayer. • Perform an industrial process.

Process

Make a presentation to the Arica Industrial Free Trade Zone with the following documents in 4 copies: • Cover letter and document delivery to the Manager of Arica Industrial Free Zone. • Legal Representative Power (if applicable). • Representative ID photocopy. • Special Purpose Background Certificate. • Notarized affidavit. • Constitution deed. • Join to the Commercial Register. • 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.

Time limit

Indeterminate

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4.3 WORKFORCE HIRING BONUSES

Benefit Name

WORKFORCE HIRING BONUSES

Institution

Arica and Parinacota Regional Treasury Address: Arturo Prat N° 305, Arica Phone: 56-58-2231150 58-2235590 www.tesoreria.cl

Requirements

• Pension quotes monthly paid. • Affidavit, declaring not been convicted in the past six months for anti-union practices or violation to fundamental rights of the workers.

Process

The process can be done in person at the Treasury Department or online through the website: Present Process: • Employer ID. • Bill of taxation 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 application is approved.

Time limit

Annual

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4.4 INVESTMENT BONUSES: PRIMING FUND AND DEVELOPMENT OF DISTANT ZONES

Benefit Name

INVESTMENT BONUSES

Institution

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 Mines • 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 occurs here 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

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4.5 SIMPLIFIED EXPORTING SYSTEM (ALSO KNOWN AS “VAT REFUND FOR TOURISTS”)

Benefit Name

SIMPLIFIED EXPORTING SYSTEM (VAT REFUND FOR FOREIGNERS)

Institution

Arica and Parinacota IRS Address: Arturo Prat N° 305, Arica 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

• To 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. Before 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. The purchaser must be a natural person not domiciled or resident on the country casts the bills. Consumed products are not entitled to a refund; such products must cast a ballot.

Bonus Payment

Time limit

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 Bill, delivering in Customs for exact verification of the bill contain 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 for this purpose.

Indeterminate

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4.6 EXPORTATION CENTERS

Benefit Name

EXPORTATION CENTERS

Institution

Finance Ministry

Requirement

• Natural or Legal person. • Fulfill requirements specified in tender.

Process

The Exporting Centers Administration will be put out to tender 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

Aricaâ&#x20AC;&#x2122;s San Marcos Church, built in France on the Gustavo Eiffel and Co. workshops, opened in July, 1876.

Typical Craft from Parinacota Province.

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CHAPTER V – COMPARATIVE ANALYSIS OF RESULTS By Luis Araníbar, International Service Ltda.

5.1 COMPARATIVE TABLE: SUMARY 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, $ 400.000.000 annual gross sales and $ 40.000.000 annual profit, used in each posture: 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 ACT

NOT APPLICABLE

$ 144.000.000

DFL-15 BONUS (OPTION)

NOT APPLICABLE

$ 96.000.000

NOT APPLICABLE

MANPOWER BONUS

NOT APPLICABLE

$ 193.065.600

• 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.

Only to 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.

INDUSTRIAL FREE ZONE

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. • Monthly Provisional Payments (MPP) • VAT

NOT APPLICABLE

GENERAL SYSTEM

To 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. • Monthly Provisional Payments (MPP) • VAT

1st YEAR INCENTIVES INCENTIVES PROJECTION 2025

$ 22.851.200

$ 100.000.000

$ 337.065.600

INCENTIVE VS INVESTMENT CONTRIBUTION

70,22%

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5.2 PRACTICAL EXAMPLE 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

$ 480.000.000

Exchange rate CPL $480.-

• Number of workers • Annual net sales

$ 400.000.000

• Utility

$ 40.000.000

Tax Area • VAT taxpayer

Rate

19%

• Income Tax first class taxpayer

Rate

20%

Tax determination • Debit sales tax

(400.000.000 x 19%)

• Income tax first class

(40.000.000 x 20%)

$ 76.000.000 $ 8.000.000

INCENTIVES APLICATION • Tax Credit Arica Act

NOT APPLICABLE

• Investment Bonus DFL-15

NOT APPLICABLE

• Manpower Bonus DL. 889

NOT APPLICABLE

• Industrial Free Zone

NOT APPLICABLE

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5.3 PRACTICAL EXAMPLE 2 General System Company located in Arica Records US $

• Investment in new depreciable fixed assets

1.000.000

$ 480.000.000

Exchange rate CPL $480.-

• Number of workers • Annual net sales

$ 400.000.000

• Utility

$ 40.000.000

Tax Area • VAT taxpayer

Rate

19%

• Income Tax first class taxpayer

Rate

20%

Tax determination • Debit sales tax

(400.000.000 X 19%)

$ 76.000.000

• Income tax first class

(40.000.000 X 20%)

$ 8.000.000

Access to incentives • Tax Credit Arica Act: $480.000.000 x 30%

$ 144.000.000

• DFL-15 (alternative to tax credit) : $480.000.000 x 20%

$ 96.000.000

Manpower bonus DL. 889 (Annual): $182.000 x 17%= $30.490

$ 14.851.200

(per worker) x 40 (worker number) x 12 (months)

INCENTIVES APLICATION OPTION A: Tax Credit Supplication • Income Tax determination: • Credit use: Total Credit

$40.000.000 x 20%

8.000.000

8.000.000)

8.000.000

14.851.200

22.851.200

$144.000.000

Credit used in the example:

Following year remnant:

($8.000.000) $136.000.000

• Income Tax to pay

Realization of First Year Incentives • Income Tax (Saving) • Manpower Bonus Total Benefits, SCL

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Incentives projection to 2025 (13YEARS) $ 144.000.000

• Income Tax first class (Saving)

$ 193.065.600

• Manpower Bonus: 14.851.200 X 13 Total Benefits, SCL

$ 337.065.600

Incentive vs. Investment Contribution: 70,22%

OPTION B: DFL-15 • Investment in new depreciable fixed assets:

480.000.000

• Calculation of DFL-15 Bonus: $480.000.000 x 20%

96.000.000

Note: When the company gets the DFL-15 benefit by investments, the company earns only once 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.

Realization of First Year Incentives • Bonificación DFL-15

96.000.000

• Bonificación a la mano de obra

14.851.200

Beneficios totales, en pesos

$ 110.851.200

Incentives projection to 2025 (13 YEARS) • DFL-15 Bonus

• Manpower Bonus

$ 193.065.600 Total Benefits, SCL Incentive vs. Investment Contribution: 60,22%

96.000.000

$ 289.065.600

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5.4 PRACTICAL EXAMPLE 3 Industrial Free Trade Zone Company in Arica Records US $

• Investment in new depreciable fixed assets

1.000.000

$ 480.000.000

Exchange rate CPL $480.-

• Number of workers • Annual net sales

$ 400.000.000

• Utility

$ 40.000.000

Tax Area • VAT taxpayer

Rate

19%

• Income Tax first class taxpayer

Rate

20%

Tax determination • Debit sales tax

Exempt

• Income tax first class

Exempt

Access to incentives • Tax Credit Arica Act: $480.000.000 x 30%

$ 144.000.000

• DFL-15 (alternative to tax credit) : $480.000.000 x 20%

$ 96.000.000

Manpower Bonus DL. 889 (Annual): $182.000 x 17%= $30.490

$ 14.851.200

(per worker) x 40 (worker number) x 12 (months)

INCENTIVES APPLICATION OPTION A: TAX CREDIT (Temporal disclaimer to the Income Tax exemption) • Income Tax determination:

$40.000.000 x 20%

• Credit use: Total Credit Credit used in the example: Following year remnant:

8.000.000

8.000.000)

8.000.000

14.851.200

22.851.200

$ 144.000.000 ($

8.000.000) $136.000.000 Income Tax to pay

Realization of First Year Incentives • Income Tax (Saving) • Manpower Bonus Total Benefits, SCL

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Income Tax Credit first class in the on withdrawals or profit sharing Partner withdrawal (natural person)

$ 40.000.000

Increased overall gross income (factor 0,25)

$ 10.000.000

Taxable income for Global Complementary Tax

$ 50.000.000

Tax or factor 0,32

($ 16.000.000)

Amount to reduce

$ 8.672.432,2

Determinated tax

$ 7.327.567,8

Reduction Income Tax first class

$ 10.000.000

Return

2.672.432

Incentives projection to 2025 (13 years) $ 144.000.000

• Income Tax first class (Saving)

$ 193.065.600

• Manpower Bonus: 14.851.200 X 13 Total Benefits, SCL

$ 337.065.600

Incentive vs. Investment Contribution: 70,22%

OPTION B: DFL-15 • Investment in new depreciable fixed assets:

480.000.000

• Calculation of DFL-15 Bonus: $480.000.000 x 20%

96.000.000

Realization of First Year Incentives • DFL-15 Bonus

96.000.000

• Manpower Bonus

14.851.200

Total Benefits, SCL

$ 110.851.200

Incentives projection to 2025 (13 years) • DFL-15 Bonus

• Manpower Bonus: 14.851.200 X 13

$ 193.065.600

Total Benefits, SCL Incentive vs. Investment Contribution: 60,22%

96.000.000

$ 289.065.600

Increased overall gross income by First Class Tax: When appropriated apply the credit provided in Article 56, number 3 of de Income Tax Act, for quantities withdraw or distributed an amount equal to this will be added for the same overall gross income year and will be considered as a amount affected by the income tax 1st category to calculate this credit (final paragraph of Article 54, N° 1). Source: Manual de Consultas Tributarias Nº275. 2 It is the taxable income factor found in the section between $43.422.480 and $57.896.640, according to the global complementary tax table for year 2013. 1

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5.5 PRACTICAL EXAMPLE 4 General System Company with Head Office in Santiago and New Branch in Arica Industrial Free Zone Records Head Office • Net sales

$ 4.000.000.000

• Paid MPP (rate 2,5%)

$ 100.000.000

• Utility

$ 450.000.000

Arica Branch • Investment in new depreciable fixed assets Exchange rate CPL $480.-

US $

1.000.000

$ 480.000.000 40

• Number of workers • Annual net sales

$ 400.000.000 -0-

• Paid MPP (Accrued: $10.000.000) • Utility

40.000.000

Tax Area Head Office • VAT taxpayer

Rate

19%

• Income Tax first class taxpayer

Rate

20%

Arica Branch • Debit sales tax

Exempt

• Income tax first class

Exempt

Access to incentives (Arica Branch only) • Tax Credit Arica Act: $480.000.000 x 30% • DFL-15 (alternative to tax credit): Manpower Bonus DL. 889 (Annual): $182.000 x 17%= $30.490

$ 144.000.000 NOT APPLICABLE 3 $

14.851.200

(per worker) x 40 (worker number) x 12 (months) In the DFL-15 case, total sales exceed the maximum limit set by the competition ($1,141.842.500), therefore, is off the bases for compete. 3

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INCENTIVES APPLICATION TAX CREDIT (Temporal disclaimer to the Income Tax exemption) 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: $ 98.000.000

• Income Tax determination: • Head office utility

$450.000.000 x 20%

= $90.000.000

• Arica branch utility

$ 40.000.000 x 20%

= $ 8.000.000

Total Income Tax

$98.000.000

• Credit use: Total credit

$144.000.000

($ 98.000.000)

Credit used in the example: ($ 98.000.000) Following year remnant:

$46.000.000

• Income tax to pay

• Paid MPP

$ 100.000.000

• Balance in favor (tax return)

$ 100.000.000

Income Tax Credit first class in the on withdrawals or profit Partner withdrawal in the year (natural person)

$ 50.000.000

Increased overall gross income (factor 0,25)

$ 12.500.000 $ 62.500.000

Taxable income for Global Complementary Tax Tax or factor 0,37

($ 23.125.000)

Amount to reduce

$ 11.567.266,2

Determined tax

$ 11.557.733,8

Reduction Income tax credit first class

$ 12.500.000

Return

942.266

Incentives projection to 2025 (13 years) $ 144.000.000

• Income tax first class (Saving)

$ 193.065.600

• Manpower Bonus: 14.851.200 X 13 Total Benefits, SCL

$ 337.065.600

Incentive vs. Investment Contribution: 70,22% Increased overall gross income by First Class Tax: When appropriated apply the credit provided in Article 56, number 3 of de Income Tax Act, for quantities withdraw or distributed an amount equal to this will be added for the same overall gross income year and will be considered as a amount affected by the income tax 1st category to calculate this credit (final paragraph of Article 54, N° 1). Source: Manual de Consultas Tributarias Nº275. 5 It is the taxable income factor found in the section between $57.896.640,1 and $72.370.800, according to the global complementary tax table for year 2013. 4

Candelabra cactus, grows naturally in the highlands, between 1700-3000 m, in extreme dryness.

Sunset in Fishermen Cove.

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APPENDIX N째 1 ARICA AND INDUSTRIAL ZONES MAP

ZI2, INDUSTRIAL ZONE 2: Zofri Chacalluta Gateway of America

ZI3, INDUSTRIAL ZONE 3: Industrial Neighborhood

ZI1, INDUSTRIAL ZONE 1: Industrial Fishing Sector

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APPENDIX N° 2 LAW N° 20,655 REPORT ESTABLISHING SPECIAL INCENTIVES FOR DISTANT AREAS ARICA AND PARINACOTA REGION Raúl Castro Letelier Attorney The law N° 20.655 establishing Special Incentives for Distant Areas in 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 study of this Distant Zone Act, the Modifications to the Special Legislation are set bellow available to the Arica and Parinacota Region.

1.-ACT Nº19.853 THAT CREATES HIRING WORKFORCE BONUSES The modifications which are introduced to this Act, in conjunction with Arica and Parinacota Region, are: a) Benefit is established from January 1, 2012 through December 31, 2025; 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 not been convicted in the past six months for anti-union practices or violation to fundamental rights of the workers.f) Treasurer, as Inspector Benefit, may require to the Employers 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, with the following characteristics: a) Bonuses that are granted under this fund will be 20% of each investment or reinvestment amount, during 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 DFL N° 15 in 1981 of the same Ministry, which is also amended by the Act N° 20.655 on Extreme Zones in the following ways:

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d.1. Establishing new standards of evaluation in the Projects quality; d.2. Bonus applications will be received every year between November, 15 and December, 31, both dates inclusive; d.3. Bonus 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 N째 19.420 THAT STABLISHES INCENTIVES FOR ECONOMIC DEVELOPMENT OF ARICA AND PARINACOTA PROVINCES. In the Law N째 20.655 on Extreme Zones, the following modifications to the Incentives were introduced.

3.1 INVESTMENT TAX CREDIT: The Articles 1 to 9 of the Law N째 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 N째 20.655 on Extreme Zones were introduced the following modifications: A) May Access this benefit those taxpayers whose investment projects exceed monthly 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 below:

1.- BENEFIT When the credit amount for the year, according to Affidavit and Information Duties that includes the number 3 and followings of this section, on the investments referred in this Act, equals or exceeds the average first class tax that has been determined during the last three tax years, the taxpayer is exempted from paying MPP. To calculate the average, the first class tax are deemed to zero, when the taxpayer has determinate a tax loss as result of the respective year. When the estimated credit is less than average first class tax stated in the preceding paragraph, the taxpayer may suspend the MPP up to an amount equal to 25% of total expenditures destined for investment referred to this law, the corresponding estimates for

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commercial year. In the previous cases, the estimated credit shall be the remaining credits under this law that can be charged to the following tax years. Besides, the deemed credit for the respective year, determined based on the appropriated credit rate according to the previous Article, applied to projected disbursements for the year, intended to the investments under this law, whether such credit is earned or not at the end of it. To calculate the average indicated, the first class tax will be converted to UTM according to the prevailing value at the end of the commercial year that corresponds to the tax. The UTM number thus obtained, will be reconverted to SCL value that those have at the date of the affidavit submission referred in item 3 of this Article. artĂculo.

2.- BENEFICIARIES. The taxpayers can access the provisions of the preceding paragraph from the fourth commercial year, since the year they presented their startup Affidavit activities subject to the first class tax. Others taxpayers may suspend the MPP throughout the period prescribed in section 4, up to an amount equal to a 20% of total expenditures destined for investments referred to this law, the corresponding estimates for commercial year, notwithstanding that from the fourth commercial year noted above, the provisions of number 4 will fully apply.

3.- AFFIDAVIT AND INFORMATION DUTIES. In order to benefit from the provisions of this Article, the taxpayers must submit to the IRS, in the manner and time as it is determined by resolution, an Affidavit to that effect, accompanied by a technicality of the investment Project; the estimated dates of beginning and end, a specification of the property to be acquired or build and the investment total amount. The referred Affidavit must be complemented by the taxpayers in each commercial year in which they will receive the benefit of this Article, for the same investment Project shall be reported to the IRS, on the same manner indicated above, the projected disbursements made and the credit amount estimated for the same year, calculated in the manner referred to in item 1 above. In any case, the taxpayers always can rectify, in substance, in the manner and time established by the IRS, the information about the estimated credit and the project disbursements for the year, which are intended for investments under this Act. Similarly, in substance, may declare that will not continue developing the investment project that leads to benefit. When the information provided by the taxpayer in his rectifying return proves a lower percentage of suspension of the mandatory MPP, or does not correspond derogation, shall, in respect of gross income pertaining to the month of such rectification and the following, fulfill the obligation to make MPP, according the general rules. Taxpayers also report the amount of gross income in the respective monthly tax declaration for mandatory MPP calculating of each period that such payments have been suspended under this Article.

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4.- APPLICATION PERIOD. Taxpayers may use the benefit that sets this Article to count the mandatory provisional payments required to be declared and paid in gross income obtained since the month of Affidavit filling referred above, until the end of this commercial year. However, the mandatory provisional payments of the following monthly periods may be suspended, applying the rules established on the numbers 1 and 2 above, provided that the supplementary affidavit established in the first paragraph of number 3 above is previously submitted to the IRS.

5.- PENALTIES. In case of taxpayers having suspended the mandatory MPP improperly, shall be deemed for all legal purposes as not declared or paid mandatory provisional payments, thus will be due along with the adjustments, interest and penalties that apply. For these purposes, shall be deemed improper the mandatory MPP when the taxpayer has reported in the stipulated affidavit in the item number 3 above or in the complementary or rectifying statement, where applicable, a credit greater than the estimated that have corresponded based on the investments disbursements referred by this law, actually made during the year, or when a suspension is invoked by a greater amount than the corresponding according to the rules of this Article or the background in the case. The provisions of this Article are without prejudice to the ability of taxpayers to invoke other mandatory MPP suspension arrangements, according to other legislation.

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3.2 EXTENDED BENEFITS ARE WELCOMED TO THE FREE TRADE ZONE SYSTEM OF IQUIQUE Law N° 20,655 on Distant Zones includes subsection 2 to Law N° 19.420 Article 2 (Arica Act II), expanding the Franchise that the Industries of the Free Trade Zone from iquique 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 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 or 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 carry 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 ($40,000.- Approx) to 0,5 UTM ($20,000.-. Approx) to qualify for this benefit.

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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 N째 20.655 ON DISTANT ZONES. Article 10 of the Law N째 20.655 on Distant Zones provides that it shall come into force since January 1, 2012. In the case of Amendments to Law N째 19.420 establishing incentives on Arica and Parinacota, XV Region, they shall apply in respect of investments consisting of property that is acquired or complete build 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 N째 20.655, i.e. from May 2, 2013. February 1, 2013 ARICA

ARICA AND PARINACOTA ROAD NETWORK, XV REGION

Source: MIDEPLAN Cartographic Database, REGIONAL DIVISION - GEOGRAPHIC INFORMATION SYSTEM UNIT. Update: Year 2009

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

River Ravine

Altimetry 0

.9 0 -6

.1 4 -5

1 14 5.

.7 2 72 4.

-4

.4 0

0 1

-4

40 4.

.1 3 -4

13 4.

.8 4 -3

1 84 3.

.5 4 -3

1 54 3.

.2 3 -3

1 23 3.

.9 2 -2

1 92 2.

.6 2 -2

1 62 2.

.3 3 33 2.

-2

.0 3

0 1

-2

03 2.

.7 2

.4 5

-1

72 1.

-1 1

1 45 1.

00 .2

-1

20 1.

40 1

-9

1 97

30 1

-7

-5 1

m.s.n.m. -3

Border pass 33

Sea routes

Secondary roads

-1

Main roads

Railroad network

Range

Glaciers, snowdrift

Town

Airdrome

National route

Km cover

Locations

Airport

International route

Airports

CORDAP appreciates the support of the Regional Council for the realization of this project.