ES
ENLegal source: Ley sobre Impuesto a la Renta
The Additional Tax applies to Chilean-source income paid to individuals or companies without domicile in Chile, at a general rate of 35% on dividends, interest, and royalties. It is withheld at the time of remittance and can be significantly reduced if a double taxation treaty is in force with the recipient’s country.
The Additional Tax applies to Chilean-source income paid to individuals or companies without domicile or residence in Chile — the tax that most directly affects a foreign investor when receiving profits.
Which income is subject to the Additional Tax?
Dividends, interest, royalties, and payments for services rendered from abroad to a Chilean company, among other Chilean-source income, become subject to this tax when remitted.
What’s the general rate and how can it be reduced?
The general rate is 35%, but it can be significantly reduced if a double taxation treaty is in force with the beneficiary’s country of residence, or if a special regime applies depending on the type of income.
How does the IDPC credit work against the Additional Tax?
For dividends specifically, Chile’s integrated system allows the Corporate Income Tax already paid by the company to be used as a credit against the Additional Tax — the usable credit percentage depends on whether a treaty is in force with the recipient’s country.
When is the Additional Tax paid?
The Additional Tax is withheld and paid to the tax authority at the moment the income is paid or remitted abroad, not on a deferred basis — so the company’s cash flow planning should account for it from the budget stage, not as a later adjustment.
Frequently Asked Questions
35% on dividends, interest, and royalties paid abroad.
Yes, significantly, if a double taxation treaty is in force.
It's withheld and paid at the time the income is paid or remitted abroad.
How Izquierdo Deramond Consultores Can Help
At IDC we handle the accounting and monthly tax compliance of foreign-owned companies in Chile, including assessing which double tax treaties apply to your case. If you need support on this front, let’s talk or reach us on WhatsApp.
Legal notice: This article is provided for general informational purposes only. It does not constitute legal, tax, accounting, or other professional advice, and should not be relied upon as a substitute for professional advice tailored to your specific situation. Cited rules may change; always verify the current version. To discuss your case, please contact Izquierdo Deramond Consultores.