ES
ENLegal sources: Chilean Income Tax Law, Law No. 21,850 published on 17 October 2026, and the Chilean Internal Revenue Service.
Companies in Chile pay Corporate Income Tax (IDPC) on their profits — currently 27% under the general regime — and whoever receives those profits abroad also pays a 35% Additional Tax, with the IDPC operating as a credit. Law No. 21,850 establishes a phased reduction in the general IDPC rate from 2027, reaching 23% in 2029.
Chile’s corporate tax system taxes profits at two levels: at the company level and at the level of whoever receives the profits, with credit mechanisms connecting the two.
How much Corporate Income Tax (IDPC) is paid?
The company pays IDPC on its taxable profits. Today, per the SII, the rate is 27% under the general (Semi Integrado) regime, which applies to most foreign-owned companies. A special SME regime (Art. 14 letter D of the Income Tax Law) offers a transitionally reduced rate — currently 12.5% for income years 2025 through 2027 — available only to companies meeting that regime’s size and revenue thresholds.
How does Law No. 21,850 change the corporate tax rate?
Law No. 21,850 was published in Chile’s Official Gazette on 17 October 2026. Its general commencement date is 1 November 2026, subject to the specific commencement and transitional rules for each measure. Read the published law (Spanish).
Law No. 21,850 establishes the following phase-in for the general corporate income tax regime. Match the income year to the following tax assessment year.
| Income year | Tax assessment year | General regime rate |
|---|---|---|
| 2026 | 2027 | 27% |
| 2027 | 2028 | 25.5% |
| 2028 | 2029 | 24% |
| 2029 onward | 2030 onward | 23% |
Special Pro Pyme rules under Law No. 21,755 and the Article 14(G) exceptions for 2026 and 2027 must be considered separately. For an illustrative CLP 100 million tax base, general-regime corporate tax is CLP 27 million in 2026, CLP 25.5 million in 2027, CLP 24 million in 2028 and CLP 23 million from 2029, before credits or other adjustments.
Article 9 takes effect on 1 January 2027, subject to a credit-vintage transition. The fifth transitional article retains 30% credit restitution for credits generated in tax assessment year 2028 (2027 income) and 20% for tax assessment year 2029 (2028 income). Credits accumulated through 31 December 2026 keep their previous treatment until exhausted, followed by 2027 and 2028 credits under the prescribed SAC ordering.
Do not model every distribution made from 2027 as fully integrated. Identify the credit vintage, allocation order, company regime and, for non-residents, Article 63 and the applicable treaty. Treaty entitlement must be established for the recipient and income concerned.
How much Additional Tax do non-residents pay?
When profits are remitted to a shareholder abroad without domicile in Chile, the Additional Tax applies, with a general rate of 35% on dividends or profit distributions, subject to the applicable credits and rules. Interest, royalties and services follow their own rules and rates; the dividend rate must not be applied to all outbound payments.
How does the credit that prevents internal double taxation work?
Chile applies an integrated system: the IDPC paid by the company operates as a credit against the Additional Tax paid by the foreign shareholder when receiving the profit, subject to the company regime, credit vintage, restitution rules and applicable treaty.
Why isn’t this a generic calculation?
The specific tax regime that applies to you (different regimes exist depending on company size and type) determines the exact credit percentage and the total effective tax burden. This is one of the decisions where a case-by-case evaluation before incorporating matters most, not after.
Frequently Asked Questions
27% under the general (Semi Integrado) regime, per the tax authority.
Yes. Law No. 21,850 was published on 17 October 2026. The general regime remains at 27% for income year 2026, falls to 25.5% in 2027 and 24% in 2028, and reaches 23% from 2029; special regimes must be reviewed separately.
Yes, 12.5% on a transitional basis for income years 2025 through 2027, subject to the Pro Pyme eligibility requirements.
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.