Within the framework of the government’s economic program and recent public statements, various tax and economic measures have been announced. Below is a summary of these measures, prepared by our tax team based on the information available, as well as on statements made by the Minister of Finance in an interview with Teletrece, his participation in a Diario Financiero seminar, and the Ministry’s official press releases.
1. Reduction of the Corporate Income Tax
The proposal contemplates a gradual reduction of the Corporate Income Tax from [IR1] 27% to 23%. Additionally, the government program provides for an average reduction of the tax burden to 20% for companies that hire workers at risk of falling into informality, through a tax credit mechanism.
2. Elimination of the capital gains tax:
According to the government program, this measure would apply to shares with low stock market presence.
3. Tax reintegration:
The proposal includes the reintegration of the tax system, allowing 100% of the First Category Tax paid by companies to be credited against the personal taxes of their owners, replacing the current semi-integrated system, under which only 65% of such tax may be used as a credit upon the distribution of profits, with the remaining percentage required to be refunded.
4. Reinstatement of DL 600:
This measure aims to grant tax invariability to large investment projects, particularly in cases involving the expansion of existing projects.
5. Progressive property tax exemption for senior citizens on their primary residence:
The authority announced a progressive exemption from property tax for senior citizens with respect to their primary residence.
6. Extension of the DFL 2 benefit:
The proposal provides for extending the DFL 2 benefit to more than three residential properties, provided that each property has a surface area of up to 90 square meters, maintaining the associated exemptions and incorporating a moderate one-time tax, estimated at approximately 5%.
7. Temporary VAT (IVA) exemption on housing:
The application of a 0% VAT rate for a period of 12 months was announced for a specific stock of housing units, with the aim of facilitating access to housing.
8. Temporary reduction of the inheritance and gift tax:
A temporary reduction in the inheritance and gift tax rate is contemplated. This tax is currently subject to a progressive scale, with a maximum rate of 25% for amounts exceeding 1,200 Annual Tax Units (UTA). This reduction would apply for a limited period, with the purpose of encouraging the advancement of gifts or the early payment of inheritance tax.
9. Repatriation of capital:
The establishment of a nine-month temporary window for the repatriation of capital is proposed, allowing assets held abroad to be regularized through the payment of a tax at an estimated rate of approximately 8%.
10. Macroeconomic employment subsidy:
The creation of a subsidy that would allow employers to recover a portion of the labor contributions paid on behalf of their workers, with the aim of encouraging job formalization and particularly supporting small and medium-sized enterprises.
11. Maintenance of the 12.5% tax rate for SMEs (PYMEs):
The government program proposes maintaining the 12.5% tax rate implemented during the pandemic and currently in force until 2028, applicable to small and medium-sized enterprises, without introducing additional changes.
Measures adopted in response to the increase in fuel prices
On March 25th, the Ministry of Finance announced a series of changes adopted through decrees and resolutions:
12. Adjustment to the fuel tax:
Through Exempt Decree No. 107, the variable component of the specific fuel tax was set as of March 26th, 2026. The adjustment implies a slight reduction in the resulting tax on gasoline and diesel, and an increase for liquefied petroleum gas and compressed natural gas for vehicular use.
13. Stabilization of kerosene prices:
The calculation formula of the kerosene stabilization mechanism was adjusted, and the authority was granted the power to increase the FEPP by up to USD 60 million, in order to maintain prices at levels similar to the February 2026 average.
14. Monthly CLP 100,000 bonus for transport operators:
For a period of up to six months, applicable to owners of taxis, shared taxis, and school transportation services registered in the corresponding registries as of March 24th, 2026, including operators in cross-border areas (Arica–Tacna).
15. Freeze on public transportation fares:
Applicable in the Metropolitan Region, together with increased funding for transportation systems in other regions.
16. Temporary adjustment to the recovery of the specific diesel tax:
In order to finance the other measures, a temporary reduction in the percentage of recovery of the specific diesel tax for non-transport taxpayers was adopted, aligning it with the regime applicable to freight transport. SMEs will continue to be subject to the current treatment.
In this context, it is expected that these and other measures will be further detailed in the presentation of the tax reform announced for April 1st, at which time the final scope of the proposals and their potential legislative process will be known.