November 13, 2012 / 11:15 PM / 5 years ago

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
    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.
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