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Corporate tax

Tax rate for resident companies

The corporation income tax legislation provides 2 types of taxes:
- First Category Tax: on income derived from commercial, industrial and agricultural activities; mining, fishing; investment and real estate. The tax rate is 16% in 2002, 16.5% in 2003 and 17% beyond.
- Second Category Tax: refers to incomes arising from wages, salaries, overtime payments, bonuses, fees, gratuities, profit sharing and any other form of remunaration.

Taxe rate on long-term capital gains

Capital gains are included in gross income subject to First Category tax with certain exceptions.

System governing groups of companies and dividends paid by subsidiaries to their parent companies

The amounts distributed or remitted to non resident or non-domiciled shareholders are subject to a 35% additional tax with a credit of the current rate of the First Category Tax.

Tax rate on branches

Branches are subjected to a tax at the rate of 35%,

Income tax

Fiscal year

The fiscal year begins on January 1-st and ends on December 31 of the same year.

Income tax rate

The rate is progressive from 0% to 50%, The persons non-residents are liable for a tax on their incomes during the first six months of their stay in Chile as far as they carry on scientific, cultural or technical activities, The other persons are subjected to a rate of 35%,
The rate depends on monthly units of levy (a unit worth about 20,673 CH$):
Lower than 10 units0%
11-30 units5%
31-50 units10%
51-70 units15%
71-90 units25%
91-120 units35%
Beyond 120 units45%

Tax deductions or other allowances

Tax credit of 10% and other fixed deductions,

VAT rates

Standard rates

18% is the common rate,

Reduced rates

0% for exported products, 6% to 18% for other products,

Other important taxes

Name of tax
Tax on interests from operations authorized by the Central Bank,  
Tax on royalties derivated from the use of brands, patents,  
Property tax  
Municipal tax  
0,025% to 0,050% (of assets)  



Chilean financial accounting is tax returns orientated.

General accounting principles

- stocks: they are calculated with the " First in - First out " method.
- fixed assets: buildings, shares and bonds bought by the company.
- capitalization interests : interests incurred on fixed assets (shares and bonds).
- depreciations : there are several calculating methods for depreciations.
- investments and long-term fundings.
- research and development costs : they must be registered and paid off over a period of more than 6 years.
- interests for bills relative to accounts receivable and payable.
- provisions for redundancy payment.
- long term contracts.
- extraordinary costs : they appear in the profit and loss account.

Obligations and publications

Companies have to produce their their annual financial statement to the shareholders.
The account books must be published in Spanish and use the chilean currency as reference.

Certification and auditing

External audits are compulsory for companies with capital and foreign investors with repatriated profits.

Professionals and representative organizations

The main representative body is the association of the Chilean bookkeepers: "the Association of Accountant in Chile".

Useful links

For futher informations, please contact the Internal Revenue Service  


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