Chile Corporate Income Tax

Corporate income tax (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)