Chile's corporate tax has a 4-tier structure: the SME (ProPYME) regime (Law 21,755/2025) pays 12.5% for FY2025–2027 and 15% from FY2028; the attribution regime pays 25%; and the partially integrated system (PIS) pays 27%. Monthly advance payments are due on the last day of each month, with the annual return due April 30. Capital gains are taxed at the same rate as ordinary CIT. The general VAT rate is 19%. Non-residents face 35% WHT on dividends, 4% (bank loans) to 35% on interest, and 30% on royalties (15% on software).
Chile Tax Brief
Time of Update 4/05/2026
Chile Corporate Income Tax (CIT)
Chile Withholding Tax (WHT)
Chile Value-Added Tax (VAT)
Chile Capital Gain Tax (CGT)
Chile Effective Tax Rate (ETR)
Composite Effective Marginal Tax Rate:
4.51%
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TKEG Expat™ (Test) Chile Corporate Tax Guide
1.
Chile Corporate Income Tax (CIT)
In Chile, the headline CIT rate is 25% under the attribution/SME regime, 27% under the partially integrated system (PIS), and 12.5% under the SME (ProPYME) regime (Law 21,755 of 2025) for fiscal years 2025–2027, stepping up to 15% in fiscal year 2028+. The standard corporate tax and annual return must be paid by April 30 following the close of the fiscal year. Companies are required to make monthly advance payments (PPMs) due on the last day of each month, which helps reduce the tax burden at year-end.
2.
Chile Personal Income Tax (PIT)
The personal income tax rate in Chile is progressive, with a top rate of 40%. For payroll workers, the tax is deducted monthly, and the tax return is typically due by April 30 or May 9. Independent workers are also required to make monthly payments but only when invoices are issued. Final PIT payments must be made by the end of April following the tax year.
3.
Chile Capital Gains Tax (CGT)
For corporations, capital gains are taxed as part of the normal CIT regime, which means they are subject to the standard CIT rate. For individuals, the CGT rate is 40%, which applies to gains made on investments and other capital-related income. This rate reflects Chile’s progressive approach to taxing high earners and capital gains.
4.
Chile Value-Added Tax (VAT)
Chile imposes a VAT of 19% on the sale of goods and services, including imports and sales of fixed assets. VAT is payable on a credit-debit system, where businesses offset VAT on purchases (VAT credit) against the VAT they charge customers (VAT debit). The balance must be paid monthly. Certain goods, such as exports and transactions involving government agencies, are exempt from VAT.
5.
Chile Excise Taxes
Chile also imposes excise taxes on specific goods, such as alcoholic beverages, tobacco, and luxury items. These excise taxes range from 10% to 50%. Additionally, there are ‘green taxes’ targeting pollutants and non-eco-friendly products like boilers and turbines. The country also levies a gasoline tax, which varies depending on the difference between a fixed amount and the price of gasoline or diesel oil.
