Cross Border in Chile

General reference only. This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.

This skill covers what a Chilean payer must withhold when it pays a person without domicile or residence in Chile in 2026, how a treaty changes that, the thin capitalisation tax on interest paid to related lenders abroad, and the cross-border filings of a Chilean resident. Currency: Chilean peso (CLP).

Linked skills, not repeated here:

• cl-corporate-income-tax: the IA rates on dividends and withdrawals (35% with the IDPC credit, and the 35% restitution), on interest (35%, or 4% on loans from foreign banks and the other listed cases) and on royalties (30%, 15% on patents and software, standard software exempt), with the worked dividend example.
• cl-transfer-pricing: the arm's length rule for operations with related parties abroad (art. 41 E) and its sworn statements.
• cl-income-tax: residence (CT art. 8 No. 8, 183 days), the three-year rule for new residents, and the penalties of CT art. 97 No. 11 for late payment of tax withheld.
• cl-payroll: wages of employees working in Chile.
• cl-vat-return: IVA on services from abroad (reverse charge), which is separate from the IA.

Which text of the law. DL 824, Ley sobre Impuesto a la Renta (LIR), LeyChile version of 17 October 2026: arts. 41 A, 41 F, 41 H, 58, 59, 59 bis, 60, 62, 63, 74 No. 4, 79. Ley 21.850 (17 October 2026) changes arts. 14, 17, 20, 56, 63 and 107, not the IA rates of arts. 58 to 60; its removal of the last paragraph of art. 63 and the restitution phase-out are covered in cl-corporate-income-tax.

Who this applies to

• Non-residents with Chilean-source income. Individuals without domicile or residence in Chile, and companies incorporated abroad, pay IA on Chilean-source income: profits remitted by a Chilean permanent establishment (art. 58 No. 1), dividends from Chilean companies (art. 58 No. 2), gains on indirect transfers of Chilean assets (art. 58 No. 3), the payments listed in art. 59, and any other Chilean-source income (art. 60).
• Chilean payers. Anyone who remits abroad, credits to an account, puts at the disposal of, or pays income subject to IA withholds it at the IA rate that applies (art. 74 No. 4) and declares and pays it in F50 (art. 79). If the payer does not withhold, or under-withholds on a treaty claim that turns out not to apply, the payer answers for the tax, with a right to recover it from the non-resident (art. 74 No. 4).
• Chilean companies borrowing from related parties abroad, for the excess-debt tax of art. 41 F.
• Chilean residents with foreign income or investments, for the foreign tax credit (art. 41 A) and DJ 1929.
• Out of scope: treaty rate tables and treaty-specific clauses, the art. 41 G controlled foreign company rules, the art. 107 regime for listed securities, and DL 600 invariability.

Rates, bands and thresholds

Item	Rate	Year	Source URL
IA, general rate (arts. 58, 59 fourth paragraph, 60)	35%	2026	https://www.bcn.cl/leychile/navegar?idNorma=6368 (LIR arts. 58, 60)
Remuneration for services rendered abroad (art. 59 No. 2)	35% of the gross amount	2026	https://nuevo.leychile.cl/servicios/Navegar/get_norma_json?idNorma=6368 (LIR art. 59 No. 2)
Engineering or technical work, and professional or technical services given through advice, report or plan, in Chile or abroad	15%; 20% where the payee is in a preferential regime (art. 41 H) or the other cases of art. 59 first paragraph	2026	same, art. 59 No. 2 last paragraph
Exempt payments abroad	Freight, shipping and unloading, storage, weighing, sampling and analysis, insurance and reinsurance not taxed under No. 3, commissions, international telecommunications, smelting and refining of Chilean products; and, for exportable goods and services, advertising, market research, scientific and technological research and legal defence abroad, if reasonable and reported to the SII	2026	same, art. 59 No. 2
Insurance premiums with insurers not established in Chile (Chilean property, goods in transit, life of Chilean residents)	22% of the premium	2026	same, art. 59 No. 3
Reinsurance with those insurers	2% of the premium ceded	2026	same, art. 59 No. 3
Sea freight to or from Chilean ports, and related services	5% of gross income (reciprocity exemption possible)	2026	same, art. 59 No. 4
Lease or charter of foreign ships used in cabotage	20%	2026	same, art. 59 No. 5
Film and television material	20% (art. 60 second-paragraph rate)	2026	https://www.bcn.cl/leychile/navegar?idNorma=6368 (LIR art. 59 first paragraph)
Publishing and author's rights	15%	2026	same, art. 59 first paragraph
Digital services of DL 825 art. 8 n) to individuals who are not VAT payers	Exempt from IA	2026	same, art. 59 bis
Other Chilean-source income of non-residents (art. 60, first paragraph), such as services rendered in Chile not covered by art. 59	35%	2026	same, art. 60
Scientific, cultural or sports activities carried out in Chile by non-resident individuals	20%, sole tax on the gross amount, withheld before they leave Chile	2026	same, art. 60 second paragraph
Indirect transfer of Chilean assets (art. 58 No. 3): provisional withholding by the buyer	20% of the price, or 35% of the gain computed under art. 58 No. 3 b)	2026	same, art. 74 No. 4
Gains of non-residents on the operations of art. 17 No. 8 a), b), c), d), i), m)	Provisional withholding of 10% of the gross amount, or 35% of the gain where it can be computed	2026	same, art. 74 No. 4
Excess-debt tax (art. 41 F)	35% sole tax on the interest and charges paid to related parties abroad that match the excess of total annual debt over 3 times equity	2026	same, art. 41 F Nos. 3 and 8
Foreign tax credit of residents (art. 41 A)	Lower of the individual cap (foreign tax actually borne, up to 35% of the gross income of each type) and the global cap (35% of net foreign income plus the creditable tax)	2026	same, art. 41 A No. 3

The base

1. Is it Chilean-source and is the payee non-resident? Residence follows CT art. 8 No. 8 (see cl-income-tax). If yes, classify the payment: dividend or withdrawal (art. 58), one of the art. 59 items, or other income (art. 60).

2. Base and rate. Art. 59 tax is on the total amount paid or credited, with no deduction (art. 59, first and fourth paragraphs). Art. 60 second-paragraph income is taxed on the gross amount. For art. 58 No. 1 and art. 60 first paragraph, the base follows art. 62 (all categories of Chilean income, including income exempt from the cedular taxes) and, where the payment carries IDPC, the base is grossed up by the art. 63 credit, which then comes off the tax (arts. 58, 62, 63, 74 No. 4; worked in cl-corporate-income-tax).

3. Treaty relief at source (art. 74 No. 4). Where the payee is resident in a country with a treaty in force and is entitled to its benefits, the payer may withhold at the treaty rate, or not withhold where the treaty gives the taxing right only to the other country, if the payee hands over:

• a certificate of residence issued by the competent authority of the other state; and
• a declaration, in the form the SII sets by resolution, that it has no permanent establishment or fixed base in Chile to which the income belongs and that it meets the treaty's requirements.

A residence certificate is presumed, unless shown otherwise, to prove residence for the calendar year in which it was issued. The SII's treaties page lists the treaties in force with their date of application in Chile (for example the United States from 1 January 2024, the Netherlands and the United Arab Emirates from 1 January 2023), the Pacific Alliance convention (from 1 January 2024) and the MLI (in force for Chile from 1 March 2021).

4. Thin capitalisation (art. 41 F).

• Total annual debt: all credits and liabilities of the company in the year, foreign or domestic, related or not, at their average value for the months they were outstanding, plus accrued unpaid interest that itself bears interest; unrelated credits of 90 days or less are left out (No. 5).
• Equity (patrimonio): capital propio at 1 January (or at start of activities) under art. 41, plus contributions and capital increases of the year in proportion to the time they stayed, less reductions, withdrawals and distributions, and less contributions financed directly or indirectly with related-party debt; never below 1 (No. 4).
• Excess exists only if total annual debt is more than 3 times equity at year end (No. 3).
• Base: the percentage (total debt - 3 x equity) / total debt, applied to the interest and charges paid to related parties abroad in the year that bore IA at 4%, or less than 35%, or none, because of a reduction, exemption or treaty (No. 8).
• Tax: 35%, less the IA already withheld on those amounts (No. 9). It is borne by the debtor and is deductible as an expense (No. 10). Project finance mainly from unrelated lenders can be excluded (No. 11). Declared annually in the F22 (No. 2).

5. Residents with foreign income (art. 41 A). Foreign tax on dividends, royalties, professional or technical services, wages and fees, foreign permanent establishments and treaty-country income is creditable, up to the lower of the individual and global caps in the table. Each type of income is capped separately.

Deadlines and filing

What	When	Rule
Declare and pay IA withheld	By the 12th of the month after the month the income was paid, distributed, withdrawn, remitted, credited or put at the payee's disposal	LIR art. 79
IA withheld on indirect transfers (art. 10 third paragraph, art. 58 No. 3) and on art. 21 items	In the annual F22, not F50	LIR art. 79
Art. 60 second paragraph (artists, scientists, sportspeople)	Withheld and paid before the person leaves Chile	LIR art. 60
Excess-debt tax of art. 41 F	Annual F22 for AT 2027, April 2027	LIR art. 41 F No. 2
DJ 1929 on operations abroad, DJ 1930 on debt abroad (AT 2026 calendar)	30 June	SII declaraciones juradas 2026 table

How to file F50. Log in at sii.cl with the payer's RUT and Clave Tributaria, open Servicios online, Impuestos mensuales, Declaración mensual (F50), and choose the month. Lines 1 to 46 are the IA withheld under art. 74 No. 4: lines 1 to 4 dividends and withdrawals, 5 to 10 intangibles (line 7 software at 30% or 15%), 11 to 15 interest (35% or 4%, with a treaty-rate column), 16 and 17 engineering or technical services in Chile or abroad (20% or 15%), 18 other services abroad (35%), 20 and 21 art. 60 scientific, cultural or sports activities (35% for companies, 20% for individuals), 22 other art. 60 income (35%); line 45 is the subtotal (code 782). Enter the base in the general, reduced or treaty column for each line, check the tax, submit and pay; keep the folio. Treaty claims also need the certificate and declaration on file at the payer.

How to file DJ 1929. Residents (including fund managers investing abroad) and Chilean permanent establishments of foreign entities report their investments abroad, controlled foreign entities, foreign permanent establishments, operations producing foreign income and other operations abroad, with the income, passive income of controlled entities and losses, in pesos (SII DJ 1929 instructions).

Penalties and interest

• Tax not withheld or under-withheld: the payer is liable for it (art. 74 No. 4), with the right to recover it from the non-resident.
• Late payment of tax withheld: CT art. 97 No. 11 (10% plus 2% a month, up to 30%; higher when found in an audit), set out in cl-income-tax.
• Late payment interest: CPI adjustment and the CT art. 53 penal interest, 7.70% a year for July to December 2026 (in cl-income-tax).
• Treaty relief that did not apply: the payer answers for the tax not withheld (art. 74 No. 4).

Cross-border points

• Dividends to non-residents with the IDPC credit and the 35% restitution, and the treaty clause that removes it, are worked in cl-corporate-income-tax.
• Transfer pricing: a payment abroad to a related party must also be at arm's length (art. 41 E), see cl-transfer-pricing.
• IVA: services used in Chile and provided from abroad can carry IVA by reverse charge, separately from the IA; see cl-vat-return.
• Treaty rates are not tabulated here; read the treaty text linked from the SII's treaties page.

Two worked examples that recompute

Example 1: two invoices from a consultancy abroad

Minera Valle SpA pays a consultancy incorporated in Singapore (no tax treaty with Chile on the SII list) in March 2026:

• CLP 40,000,000 for a geotechnical engineering report: technical work, 15% (art. 59 No. 2). IA CLP 6,000,000.
• CLP 10,000,000 for general administrative support rendered from Singapore: other services rendered abroad, 35%. IA CLP 3,500,000.
• A CLP 2,000,000 commission on a sale abroad is exempt (art. 59 No. 2).

Total withheld CLP 9,500,000, declared in F50 for March (lines 17 and 18) and paid by 12 April 2026. If the consultancy were in a preferential regime under art. 41 H, the report would bear 20% (CLP 8,000,000).

name: CL IA 2026, technical report and other services abroad, no treaty
inputs:
  technical: 40000000
  other_services: 10000000
  commission: 2000000
steps:
  - ia_technical: technical * 0.15
  - ia_other: other_services * 0.35
  - ia_commission: commission * 0
  - total_withheld: ia_technical + ia_other + ia_commission
  - ia_technical_preferential: technical * 0.20
expected:
  ia_technical: 6000000
  ia_other: 3500000
  total_withheld: 9500000
  ia_technical_preferential: 8000000

Example 2: excess debt, and whether to capitalise instead

Andes Energía SpA has equity (patrimonio) of CLP 1,000,000,000 for 2026 and total annual debt of CLP 4,500,000,000. It paid CLP 270,000,000 of interest in 2026 to a related foreign financial institution, which bore IA at 4% (art. 59 No. 1 b)).

• Excess: 4,500,000,000 > 3 x 1,000,000,000 = 3,000,000,000.
• Percentage: (4,500,000,000 - 3,000,000,000) / 4,500,000,000 = 33.33%.
• Base: 270,000,000 x 1/3 = CLP 90,000,000.
• Tax at 35% = 31,500,000, less the IA withheld on that part (4% of 90,000,000 = 3,600,000): CLP 27,900,000, paid in the F22 in April 2027, and deductible as an expense.

Capitalise instead? Had the parent contributed CLP 500,000,000 of capital on 1 January 2026 (not financed with related-party debt) and the same amount of debt been repaid on that date, equity would be 1,500,000,000 and debt 4,000,000,000 < 4,500,000,000: no excess and no art. 41 F tax. The figure that decides is total debt against 3 times equity: the 41 F cost (CLP 27,900,000 here) against the cost of the capital route (dividends later bear IA with the IDPC credit). A contribution made mid-year counts only for the part of the year it stayed (No. 4).

name: CL art. 41 F 2026, excess debt tax, and the capitalised alternative
inputs:
  equity: 1000000000
  debt: 4500000000
  interest_related: 270000000
  ia_rate_paid: 0.04
  extra_equity: 500000000
steps:
  - excess_share: (debt - 3 * equity) / debt
  - base: round(interest_related * excess_share, 2)
  - tax_gross: base * 0.35
  - credit_ia: base * ia_rate_paid
  - tax_net: tax_gross - credit_ia
  - debt_after: debt - extra_equity
  - excess_after: max(0, debt_after - 3 * (equity + extra_equity))
expected:
  base: 90000000
  tax_gross: 31500000
  credit_ia: 3600000
  tax_net: 27900000
  excess_after: 0

Ask the client first

1. Who receives the payment: an individual or a company, where is it resident, and is that country on the SII's treaty list or in a preferential regime (art. 41 H)? Is it related to the payer?
2. What exactly is paid for: dividend, interest (who is the lender), royalty or software, technical or engineering service, other service, insurance, freight, a share sale? Where was the service rendered?
3. When was it paid, credited or put at the payee's disposal (the F50 month)?
4. For a treaty rate: does the payer hold the residence certificate for this calendar year and the SII declaration of no permanent establishment and entitlement?
5. For interest to related parties abroad: total annual debt, equity at 1 January and capital movements in the year.
6. For a resident with foreign income: the foreign tax paid on each type of income, and the investments abroad for DJ 1929.

Sources

Source	URL	Read on
DL 824, LIR, LeyChile version of 17 Oct 2026 (read in the LeyChile XML export; the second half of art. 59, cut off in the XML export, read in the LeyChile JSON text service): arts. 41 A, 41 F, 41 H, 58, 59, 59 bis, 60, 62, 63, 74 No. 4, 79	https://www.bcn.cl/leychile/navegar?idNorma=6368	2026-11-11
Same law, LeyChile JSON text service (art. 59 Nos. 2 to 5)	https://nuevo.leychile.cl/servicios/Navegar/get_norma_json?idNorma=6368	2026-11-11
Ley 21.850 (DO 17 Oct 2026): art. 8, read to confirm the LIR articles it amends	https://www.bcn.cl/leychile/navegar?idNorma=1229250	2026-11-11
Read for the figures named: SII, Formulario 50 (lines 1 to 46, line 45 code 782)	https://www.sii.cl/formularios/imagen/F50.pdf	2026-11-11
Read for the figures named: SII FAQ on who declares in F50 (lines 1 to 46, IA of art. 74 No. 4), updated 17 Mar 2025	https://www.sii.cl/preguntas_frecuentes/impuestos_mensuales/001_130_0159.htm	2026-11-11
Read for the figures named: SII, instructions for DJ 1929 on operations abroad, AT 2026 (who files, what is reported)	https://www.sii.cl/ayudas/ayudas_por_servicios/renta/2026/instrucciones_dj1929.pdf	2026-11-11
Read for the figures named: SII, declaraciones juradas 2026 forms and deadlines (F1929, F1930: 30 June)	https://www.sii.cl/ayudas/ayudas_por_servicios/2120-formularios_y_plazos_2026-2171.html	2026-11-11
Read for the figures named: SII, international tax conventions page (treaties in force and dates of application; Pacific Alliance; MLI from 1 Mar 2021)	https://www.sii.cl/normativa_legislacion/convenios_internacionales.html	2026-11-11

Not yet confirmed: the SII resolution that sets the form of the treaty declaration under art. 74 No. 4; whether the F50 deadline of the 12th moves for electronic filing; the AT 2027 calendar for DJ 1929 and DJ 1930; the SII resolution listing preferential regimes (art. 41 H); the treatment when the payer bears the IA for the payee (gross-up); treaty rates and treaty-specific clauses (out of scope); the rest of art. 59 (Nos. 6 and 7) and the 4% interest conditions beyond those in cl-corporate-income-tax; the F22 AT 2027 codes for the art. 41 F tax.