Fischer y Cía. ha creado este sitio web con el fin de apoyar la comprensión y el debate sobre estos cambios en el sistema tributario chileno. Esta es información general. Por lo tanto, no es necesariamente completo o exacto. También se actualiza y corrige continuamente. Te invitamos a colaborar con esta iniciativa enviando comentarios o documentación a 

Fischer y Cía. has created this website in order to support understanding and debate on these changes to the Chilean tax system. This is general information. Therefore, it is not necessarily complete or exact. It is also continually updated and corrected.  We invite you to collaborate with this initiative by sending comments or documentation to



Personal Income Taxes:

  • Marginal rates increase, and monthly income brackets above Ch$4 million are amended. 
  • The maximum marginal rate increases to 43%. 
  • The deduction of interest on mortgage loans is limited to one loan. 
  • Rental expenses can be deducted from taxable income (Ch$465,000 monthly limit), as can expenses associated with the care of children under two years old or with a severe dependency (Ch$580,000 monthly limit). 


Desintegration of the tax system 

  • Corporate Income Tax decreases from 27% to 25%. 
  • A “development tax rate” of 2% is introduced, which can be paid through expenses that increase the company’s productivity, such as investment in innovation and development, acquisition of high technology services, protection of industrial property, or ISO certifications. 


Wealth Tax and Exit Tax 

  • These are levied every year on individuals with domicile or residence in Chile with a net worth that exceeds USD 4.5 million. 
  • The rate is 1% on a net worth exceeding USD 4.5 million and 1.8% if it exceeds USD 13.5 million. 
  • There is no distinction between the nature or location of these assets. 


Capital Gains

  • The tax on capital gains from the disposal of specific stock market instruments, such as shares, increases from 10% to 22%. 
  • Individuals who pay IGC at rates lower than 22% may compensate their capital gains using this tax. 


Tax Avoidance 

  • General antiavoidance rules can be directly applied by the IRS. 
  • Final beneficial owners with an interest of over 10% in the capital, profits or voting rights of an entity must be registered. 
  • The related party rules governing control over foreign passive entities are amended. 
  • Anonymous tax whistleblower is recognized. 
  • IRS Regional Directors are empowered to audit taxpayers of other domiciles and to jointly audit taxpayers within the same business group. 
  • The valuation rules are amended. 


Mining Royalty 

  • This royalty affects large copper mines, which are mines producing over 50,000 metric tons of fine copper per year (TMCF in Spanish). 
  • It has two components: 
    (1) Sales: royalty of between 1% and 7% for producers between 50,000 and 200,000 TMCF, and between 1% and 4% for producers over 200,000 TMCF. 
    (2) Mining margins: royalty of between 2% and 36% of net operating income, when copper prices are between two and six dollars per pound. 


Inheritances, Assignations and Donations 

  • Taxable event: Revocable donations are now a taxable event subject to donation tax.
  • Exemptions: The tax exemption is eliminated on donations by individuals for any purpose from fully taxed resources according to the LIR, limited to 20% of their overall income. Such donations are subject to the insinuation process. 



Real estate (amendments) 

Capital gains on real estate

  • Taxable gain: The computation of the taxable gain is amended and it will be taxed on an accrual basis. 
  • Exemptions: Capital gains of UF 8,000 (approximately USD 0.3 million) will continue to be treated as non-taxable income during the taxpayer’s lifetime. The preferential rate of 10% also continues. However, these benefits are limited to individuals with domicile and residence in Chile. 


Proposed amendments to the chilean Tax Reform Bill 2022

(October 4, 2022)

  • The tax base of the tax to be applied upon deferral of personal taxation has been reduced to the amount of tax actually deferred. In this sense, the new tax base is equal to 22% of the sum of the balances of the record of accumulated profits (“RUA” according to its acronym in Spanish) and the record of temporary differences (“RDT”, according to its acronym in Spanish). The tax rate has been increased from 1.8% to 2.5%.
  • Indirect credits for taxes paid by subsidiary companies overseas have been reincorporated, as well as the credit for the withholding tax paid on Chilean source income, with the inclusion of traceability requirements.
  • A maximum tax burden for income and wealth tax has been set at 50% of the profitability of the taxpayer’s assets.
  • The applicability of the limitation to the use of carried-forward tax losses has been postponed. In 2025 and 2026 calendar years, it will be possible to deduct carried-forward losses for an amount equivalent to up to 80% and 65%, respectively, of the taxable net income for the immediately preceding calendar year. From 2027, the limit will be 50% of the net taxable income of the period.
  • Some of the benefits contained in decree-law 2 [“DFL 2”, according to its acronym in Spanish, applicable to properties with a surface area of up to 140 m2] have been reincorporated, exclusively for senior citizens and taxpayers who purchased DFL 2 properties from January 2017 to the present date.
  • Taxpayers declaring income obtained from residential property rental may deduct 10% of said income as expense.
  • Regarding the rules allowing the Chilean IRS to reassess the price or value of a transaction, a definition of “legitimate business reasons” has been expressly included, as well as an alternative for taxpayers, who might decide not to use the valuation methods specified in the regulation, provided they can substantiate that the transaction was carried out at market value via other supporting documentation.
  • An adjustment to the calculation of the net taxable income has been incorporated in order to mitigate the risk of double taxation on the distribution of financial profits in excess of taxable profits.
  • It is expressly stated that companies subject to the general tax regime must only declare income received from other companies as part of their net taxable income when those companies are subject to the small and medium-sized companies (“SME”) regime.
  • For companies that are subject to the SME regime, a schedule has been introduced to gradually increase the corporate tax rate [“IDPC” according to its Spanish acronym]. In 2023, the rate for SMEs will be 15%, and 20% in 2024.
  • For 2023, an extraordinary regime has been established for the depreciation of fixed assets used for investment purposes, allowing the instantaneous depreciation of 50% of the value of said fixed asset and the possibility of accelerated depreciation for the remaining 50%.


Proposed amendments to the chilean Tax Reform Bill 2022 (October 17, 2022)

  • The rules for the valuation of shares to determine the tax base of the inheritance and gift tax are amended (article 46 IGTL).
  • The tax treatment applicable to investment funds is modified (article 81 LUF). Most relevant amendments:
    • The amounts to be included in the record of accumulated profits (“RUA” according to its acronym in Spanish) and in the record of temporary differences (“RDT”, according to its acronym in Spanish) is modified.
    • The Tax on deferred income will be applicable to Funds, over the balance of the amounts registered in their RUA and their RDT.
  • The tax treatment applicable to investment fund’s quota holders is modified (article 82 LUF). In general terms:
    • Chilean-resident quota holders:
      • Final Taxation Taxpayers: distributions received by them will be subject to the Dividends Tax (22% rate) established in the Income Tax Law. Personal Income Tax (IGC) taxpayers can elect to be subject to this tax instead according to the general rules.
      • Corporate Tax (IDPC) taxpayers: distributions from the RDT will be subject to IDPC.
    • Non-Chilean resident quota holders: will be subject to a sole 14% withholding tax on distributions corresponding to RUA and to a sole 35% withholding tax on distributions corresponding to RDT. The Fund Management Company must act as withholding agent.
  • Tax treatment applicable to Private Investment Funds (“PIF”) is modified (article 86 LUF): PIFs will be subject to the general rules of Article 14 A) of the Income Tax Law, except those investing in venture capital that complies with certain minimum investment requirements.


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