Chile Corporate Income Tax

Corporate income tax (First Category Tax)

• Overview of First Category Tax — Chile taxes corporate profits via the First Category Tax (Impuesto de Primera Categoria, FCT), which is partly integrated with shareholders' personal/Additional Tax. SMEs use the simplified ProPyme regime with a temporarily reduced rate. Draft figures for accountant review.
• Standard corporate income tax rate (semi-integrated regime) — 27% % (LIR Art. 20 / Art. 14 A — regimen semi-integrado)
• ProPyme (SME) regime rate, 2025 — 12.5% % (Temporarily reduced to 12.5% for fiscal years 2025-2027; 15% in 2028; reverts toward 25% afterward) (LIR Art. 14 D — Regimen ProPyme; Ley 21.578 (transitory reduction))
• ProPyme regime baseline rate (outside the temporary reduction) — 25% % (LIR Art. 14 D — Regimen ProPyme)
• ProPyme eligibility threshold — Average annual gross income over the last 3 years not exceeding 75,000 UF UF (LIR Art. 14 D)
• Tax base — Net taxable profit (Renta Liquida Imponible) — worldwide income for resident companies, with deduction of necessary business expenses and inflation adjustment (correccion monetaria) (LIR Art. 29-33 — determinacion de la RLI)
• Integration with shareholder tax — Semi-integrated regime: shareholders credit 65% of the FCT paid against their IGC/Additional Tax (full 100% credit under treaties) (LIR Art. 14 A / Art. 56 No. 3 / Art. 63)
• Withholding tax on dividends to non-residents — 35% % (Additional Tax, reduced by the creditable portion of FCT already paid) (LIR Art. 58 No. 2 — Impuesto Adicional)
• Withholding tax on interest to non-residents (general) — 35% % (LIR Art. 59 — Impuesto Adicional)
• Withholding tax on interest — qualifying foreign bank/financial-institution loans — 4% % (LIR Art. 59 No. 1 — Impuesto Adicional)
• Withholding tax on royalties to non-residents — 30% general; 15% for software/patents/certain IP; standard (non-customised) software may be exempt % (LIR Art. 59 — Impuesto Adicional)
• Monthly provisional payments (PPM) — Monthly advance payments of FCT based on prior-year tax burden; SME PPM rates are halved for FY2025-2027 (LIR Art. 84 — Pagos Provisionales Mensuales)
• Corporate annual return filing & payment deadline — April of the year following the tax year (Operacion Renta), with monthly PPM credited (approx — confirm exact April date each year) (SII Operacion Renta)