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Impostos a Xile

Tax Rates

Consumption Taxes

Nature of the Tax
Impuesto a las Ventas y Servicios o IVA (Value-Added Tax or VAT, in English).
Tax Rate
Reduced Tax Rate
No reduced rates apply; however, certain products/services are exempt from VAT (see above).
Other Consumption Taxes
Specific items are subject to taxes imposed under the VAT law ranging from 10% to 50%, including jewellery (15%); alcoholic beverages (from 15% for fermented to 31.5% for distilled); soft drinks with high sugar content (18%); other natural or artificial soft drinks, including energy or hypertonic drinks (13%); and 50% over the first sale or import of pyrotechnic items.

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Corporate Taxes

Company Tax
Tax Rate For Foreign Companies
Resident companies are taxed on their worldwide income, whereas non-domiciled or non-resident companies are taxed only on their Chilean-sourced income.
Final shareholders are subject to a 35% flat rate applied by way of withholding upon receipt of a taxable distribution. The tax on corporate income was totally creditable against the final tax in the SME regime, but only 65% is creditable in the partially integrated system. Nevertheless, foreign owners of a partially integrated system entity that are resident in a double taxation treaty jurisdiction are entitled to full credit as well.
Capital Gains Taxation
Capital gains are subject to standard corporate tax but may be exempt based on certain criteria: the length of time the shares are held, the usual or occasional nature of the purchase or resale of shares and the relationship between the seller and the buyer. In specific situations outlined by domestic legislation, preferential tax treatment applies to capital gains from certain securities, including stock of listed local companies, investment funds' quotas listed on authorized stock exchange markets, mutual funds' quotas invested in stock trade values, and investment funds' quotas predominantly invested in stock exchange markets, with at least 90% of the portfolio dedicated to such investments.
Capital gains obtained upon the alienation of real estate may be considered as non-taxable income in certain cases.
Main Allowable Deductions and Tax Credits
Expenses linked to business interest, development, or maintenance, capable of generating income in the current or future commercial years, are typically tax deductible.
Deductible expenses include net operating losses, payments to foreign affiliates, and taxes (not including income taxes). Subject to conditions, interest expenses can be deducted. Under certain circumstances, bad debts and charitable donations (up to 5% of the company's net taxable income) can be deductible. The deductibility of payments made abroad for the use of trademarks, patents, formulas, consulting and other similar services is limited to a maximum of 4% of the income derived from sales and services in the corresponding year. Start-up expenses can be amortised over a six-year period. Fines, penalties and the respective legal costs incurred are deductible, subject to conditions.
Losses can be carried forward indefinitely, while carrybacks are not allowed.
Other Corporate Taxes
Other taxes include stamp tax (maximum 0.8%), municipal license fee (ranging from 0.25% to 0.5% on tax equity, up to a maximum of approximately USD 550,000), real property tax (1.4% in case of non-farming real estate and 1% for farming real estate, exemptions apply), payroll taxes (ranging from 0% to 40% of employees' remuneration), and social security contributions, as follows:

- a monthly 0.93% premium on remuneration for labour-related accident insurance
- 2.4% of the worker’s gross salary for compulsory unemployment insurance contribution
- a 1.61% premium for life and disability insurance
For job positions categorized as "heavy work," the employer is required to contribute an extra percentage to the employee's pension fund, ranging from 1% to 2%, with a cap set at a variable amount.

To determine these contributions, employees' taxable remuneration is assessed, capped at 81.6 UF (approximately USD 3,300), except for unemployment insurance, where the maximum taxable remuneration cap is 122.6 UF (approximately USD 4,950).

Other Domestic Resources
Internal Taxes Service (SII)

Country Comparison For Corporate Taxation

  Chile Latin America & Caribbean United States Germany
Number of Payments of Taxes per Year 7.0 28.2 10.6 9.0
Time Taken For Administrative Formalities (Hours) 296.0 327.5 175.0 218.0
Total Share of Taxes (% of Profit) 34.0 46.8 36.6 48.8

Source: Doing Business, Latest available data.

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Individual Taxes

Tax Rate

Personal Income tax (employment income) Progressive rates up to 40%
The rate depends on the annual tax units (ATU), whose value in CLP is revalued each month (click here).
ATU 0-13.5 Exempt
ATU 13.5-30 4%
ATU 30-50 8%
ATU 50-70 13.5%
ATU 70-90 23%
ATU 90-120 30.4%
ATU 120-310 35%
Beyond ATU 310 40%
Allowable Deductions and Tax Credits
In general, all expenses incurred in the employer’s sole interest are duly deductible (for example travel and lodging expenses and documented entertainment).
Individuals resident in the country may deduct the interest paid for mortgage loans destined to the purchase or construction of one or more dwellings (capped at 8 annual tax units). A deduction for voluntary pension contributions is also applicable for resident employees, within a limit of 600 annual tax units. Furthermore, Chilean residents may receive a credit of up to UF 4.4 (approximately USD 177) per child for educational expenses. This credit is gradually reduced to zero for taxpayers with combined annual incomes exceeding UF 792 (approximately USD 31,896) from both parents.
Special Expatriate Tax Regime
Foreigners working in Chile are subject to taxation only on their Chilean-source income during the first three years in Chile, after which worldwide income is taxed.
Resident foreigners are taxed on their salary, deducting social security contributions. Non-resident foreigners cannot deduct social security contributions before acquiring Chilean residence. Foreign individuals may be exempt from some local social security payments, provided they belong to a foreign social security entity system covering at least pension, disability, illness, and death.Prior to establishing residence, a flat 15% tax is typically imposed on activities categorized as technical or engineering work, or professional services, which individuals provide through reports, advice, or plan development. Different rates may apply for other activities or if the paying company is based in a tax haven.

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Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
Servicio de Impuestos Interno - SII
Withholding Taxes
Dividends paid by Chilean entities to resident individuals are subject to a global complementary income tax at progressive rates that range from 0% to 40%. Profits distributed abroad to non-resident/non-domiciled taxpayers are subject to an additional withholding income tax of 35%
Interest: 0 (residents)/35% (4% in some cases, like for interest on loans granted by a foreign bank or international financial institution and by an insurance company or pension fund that complies with certain registration requirements)
Royalties: 0 (residents)/15% (invention patents, computer programs, utility models, industrial designs and drawings, blueprints or topography of integrated circuits, and of new vegetable varieties)/30% (trademarks, patents, formulae, and other similar services; and in case the beneficiary is resident in a jurisdiction with a preferential tax regime).

Special interest and royalties rates apply to residents of countries with which Chile has signed a double taxation treaty.
Bilateral Agreement
Chile and Spain are bound by a Double Taxation Agreement since 7 July 2003.
Withholding tax rates under the tax treaty are: 5%/10% for dividends, 5%/15% for interest and 5%/10% for royalties.
Download the treaty in Spanish.

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Sources of Fiscal Information

Tax Authorities
Servicio de Impuestos Interno - SII
Other Domestic Resources
National Customs Service
Central Bank of Chile

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Actualitzacions: July 2024

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