ES
ENLegal source: Ley sobre Impuesto a la Renta; Chilean Internal Revenue Service (SII); Bill N° 18.216-05 (pending)
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. A pending bill proposes lowering the IDPC to 23%.
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 tax years 2025 through 2027 — available only to companies meeting that regime’s size and revenue thresholds.
What rate change does the pending bill propose?
Bill N° 18.216-05, approved by Congress on August 4, 2026 and pending Constitutional Tribunal review, proposes reducing the general regime rate from 27% to 23%, amending Article 20 of the Income Tax Law. This reduction is not yet in force — it depends on the bill clearing constitutional review and being promulgated into law. Until then, the applicable rate remains 27%.
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, interest, and royalties paid abroad.
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, preventing the same income from being taxed twice within the Chilean system.
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.
No, it depends on the bill clearing constitutional review and being promulgated.
Yes, currently 12.5% on a transitional basis for tax years 2025 through 2027.
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.