UPDATE 1-Chile's Falabella quarterly net profit falls 22 pct
* Chile tax reform hits retailer * Falabella 3rd-quarter net profit falls to $127 million SANTIAGO, Nov 13 (Reuters) - Chilean retailer Falabella said on Tuesday its third-quarter net profit fell 22.2 percent to 59.528 billion pesos ($127 million), principally due to the country's higher corporate taxes. Consolidated revenue, which includes Falabella's retail and banking units, increased 15.3 percent from a year earlier to roughly 1,300 trillion pesos. "The fall in profit during the quarter is chiefly due to Chile's tax reform, which translated into an increase in the tax rate from 18.5 percent to 20 percent," Falabella said in a statement. Higher spending on administration and sales also hit margins. Chile's Congress in September approved changes in tax laws. Businesses in the Andean nation face a higher tax rate of 20 percent and fewer loopholes to evade them, though the rate remains well below Latin America's average rate of 25.06 percent in 2011, according to accountancy firm KPMG. The retailer has announced it would spend $3.5 billion through 2015 to build new stores and malls in Latin America. It operates in Argentina, Chile, Colombia and Peru.
- California passes 'yes-means-yes' campus sexual assault bill
- Ukraine seeks to join NATO; defiant Putin compares Kiev to Nazis |
- In town halls, U.S. lawmakers hear voter anger over illegal migrants |
- IBM launches Watson system for research, hopes for breakthroughs
- U.N. says 43 Golan peacekeepers seized by Syria militants, 81 trapped