Below you will find a strategic analysis of the main tax proposals of the bill that is being discussed at the Congress:
I. Permanent structural changes
Reduction of the Corporate Income Tax (IDPC, for its initials in Spanish):
A gradual reduction of the IDPC is proposed, from 27% to 23% over a four-year period. As presented in the bill, the reduction would apply both to the General Regime and the Pro-Pyme Regime, eliminating references to differentiated rates between the two systems. However, according to media reports, the Government has committed to maintaining a 12.5% IDPC rate for companies subject to the Pro-Pyme Regime.
Full tax reintegration:
The bill moves towards full tax reintegration, meaning that 100% of the IDPC paid by the company would be creditable against the final taxes of its partners or shareholders. This change would be implemented gradually, reaching full reintegration by 2030. Under a fully integrated system, profit withdrawals regain competitiveness by eliminating the dividend penalty associated with the semi-integrated system. This requires an analysis of partner compensation structures, withdrawal versus reinvestment policies, and personal tax planning.
Elimination of the 10% single tax on capital gains:
Article 107 of the Income Tax Law (LIR, for its initials in Spanish) is amended to reinstate the non-taxable income regime for gains derived from the alienation of shares and fund units with a stock market presence, thereby eliminating the application of the 10% Single Tax previously contemplated for such transactions.
Employment tax credit and elimination of the National Training and Employment Service (SENCE, for its initials in Spanish) tax incentive:
The policy shifts from vocational training SENCE to formal employment. Accordingly, the tax incentive for training expenses and the rules governing SENCE-funded courses are repealed.
Property tax exemption for senior citizens:
A full exemption from Real Property Tax is introduced, with no cap on assessed value, for natural persons aged 65 or older in respect of their principal residence. The provision includes a related-party rule that prevents the exemption from being claimed for properties acquired from related persons within three years prior to the filing of the affidavit that activates the exemption, unless the taxpayer proves that the transfer was for purposes other than purely tax-related ones.
II. Optional permanent regimes
New regime for “DFL 2” low-cost housing:
The current regime remains in effect for the first two low-cost housing units. A 5% single tax is introduced on gross rental income without any deductions, applicable from the third unit onwards (up to 90 m² per unit). Legal entities and sole proprietorships may voluntarily elect this regime, subject to a minimum mandatory lock-in period of five years and with no possibility of re-entry once they exit. This requires to carefully assess the most efficient ownership structure prior to electing the regime.
Twenty-five-year tax stability regime:
For investments exceeding USD 50 million, foreign investors are guaranteed a total effective tax burden of 35% for a 25-year period. Local investors may also benefit from tax stability for 25 years; however, stability applies to the rules in force at the time the agreement with the State is executed, including both income tax and VAT (IVA, for its initials in Spanish) provisions. Both may automatically benefit from subsequent legislative changes that are more favorable. In mining, the Royalty under Law No. 21,591 is excluded from the 35% threshold and applies in addition to it.
VAT exemption on the sale of new housing:
A temporary and optional 12-month VAT exemption is established for the first sale of residential units with final or partial municipal occupancy permits. The seller retains the right to the construction tax credit to be offset against other VAT debits, without the possibility of a refund. The seller may elect to have the tax credit carryforward form part of the property’s cost basis or be deducted as an expense. This does not apply to transfers between related parties. For sales executed between the submission of the presidential bill and the law’s publication, sellers may apply the exemption retroactively, provided they prove the tax was refunded to the purchaser who effectively bore the economic burden.
III. Estate planning and reorganization opportunities
Donations:
A 50% reduction in Donations Tax is proposed, exempting such from the judicial authorization requirement. The donation must be executed via public deed within one year following the law’s publication. The distribution must respect forced heirship rules: at least 50% to forced heirs (legitimarios, in Spanish), 25% to the improvement quartile, and the remaining 25% freely assigned among the same individuals. The total donated amount may not exceed 75% of the donor’s net worth.
Capital Repatriation:
An extraordinary regime allows taxpayers to regularize offshore assets or income that were subject to Chilean taxation but not duly declared. The regime applies for 12 months, subject to a 10% unique and substitute tax. A reduced 7% rate applies if assets are repatriated within the first three years, subject to certain conditions.
Regularization of FUR, STUT, and Excess Withdrawals from FUT:
Through a one-time 10% substitute tax for final taxes, without the right to associated credits, taxpayers may voluntarily regularize (within 8 months following the publication of the law), FUR balances, STUT balances (capped at the lower of said registry and the RAI), and excess FUT withdrawals pending allocation as of the close of fiscal year 2025 or 2026. Payment extinguishes associated credits, releases this amounts from all subsequent taxation, and allows its withdrawal or distribution without being subject to the allocation order of Article 14 of the Income Tax Law, without the tax paid being deductible as an expense.
IV. Liability regularization
Tax Debts (General Treasury of the Republic):
The General Treasury of the Republic (TGR, for its initials in Spanish) is authorized to grant payment facilities for 180 days regarding tax debts overdue as of December 31, 2025. This aimes at natural persons, MSMEs, and unclassified taxpayers. It proposes up to 100% of interest and 80% of penalties for lump-sum payments, or up to 95% and 75% respectively for payment arrangements of up to 24 installments, with a down payment of at least 10%. Any default shall revoke it as a matter of law.
Municipal debts:
Municipalities may waive 100% of the interest and penalties on municipal debts (business licenses, vehicle permits, and waste collection fees) accrued in the three years prior to January 1st, 2026. They may also waive collection actions for debts against which the taxpayer could raise a statute of limitation defense. This benefit applies even when legal collection proceedings are underway, provided there is no no final judgment.