Verified Facts
Chile's tax system is based on a territorial taxation principle, where residents are taxed on their worldwide income, while non-residents are taxed only on their Chilean-sourced income, with tax rates ranging from 0% to 40% for individuals and 25% for corporations.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Chile's tax system is based on a territorial taxation principle, where residents are taxed on their worldwide income, while non-residents are taxed only on their Chilean-sourced income. Residents are considered to be individuals who have a permanent home in Chile, or who have been present in the country for more than six months in a calendar year. The tax authority in Chile is the Servicio de Impuestos Internos (SII), which is responsible for collecting and administering taxes, as well as providing guidance and support to taxpayers.
The Chilean tax system is relatively complex, with a range of taxes and rates applying to different types of income and activities. The tax year in Chile runs from January to December, and taxpayers are required to file their tax returns by the end of April in the following year. Chile has a network of 32 tax treaties with other countries, which help to prevent double taxation and fiscal evasion. These treaties also provide a range of benefits and exemptions for taxpayers, including reduced withholding tax rates on dividends, interest, and royalties.
Personal Income Tax
| Income Bracket (CLP) | Tax Rate |
|---|---|
| 0 - 1,470,000 | 0% |
| 1,470,001 - 3,900,000 | 4% |
| 3,900,001 - 7,000,000 | 8% |
| 7,000,001 - 12,000,000 | 13.5% |
| 12,000,001 and above | 40% |
| Taxpayers in Chile are entitled to a range of deductions and allowances, including a personal exemption of CLP 1,470,000, as well as deductions for mortgage interest, charitable donations, and medical expenses. Taxpayers are required to file their tax returns electronically, and must pay any tax due by the end of April in the following year. Failure to file or pay tax on time can result in penalties and interest charges. |
Corporate & Business Tax
- The corporate tax rate in Chile is 25%, which applies to the taxable profits of companies.
- Small businesses and start-ups may be eligible for tax incentives, including reduced tax rates and exemptions from certain taxes.
- Chile has a number of free zones, which offer a range of tax and customs benefits to companies that operate within them.
- Companies that operate in Chile must register with the SII and obtain a tax identification number.
- Companies must also file annual tax returns and pay any tax due by the end of April in the following year.
VAT / Sales Tax
- The standard VAT rate in Chile is 19%, which applies to most goods and services.
- There are reduced VAT rates of 0% and 10% that apply to certain goods and services, including food, pharmaceuticals, and public transport.
- Some goods and services are exempt from VAT, including financial services, education, and healthcare.
- Tourists may be eligible for a VAT refund on certain goods and services, including accommodation and tour packages.
For Expats & Foreign Workers
- Tax residency rules in Chile are based on the 183-day rule, where individuals who are present in the country for more than 183 days in a calendar year are considered to be tax residents.
- Chile has a network of double taxation treaties with other countries, which help to prevent double taxation and fiscal evasion.
- Expats and foreign workers may be required to register with the SII and obtain a tax identification number.
- Expats and foreign workers may also be eligible for social security benefits, including pensions and healthcare.
- Expats and foreign workers must comply with remittance rules, including withholding tax on certain types of income.
- Expats and foreign workers may also be required to file annual tax returns and pay any tax due by the end of April in the following year.
Crypto & Investment Income
- Investment income, including dividends, interest, and rental income, is subject to tax in Chile.
- Cryptocurrency is considered to be a financial asset and is subject to tax on any gains or profits.
- Capital gains tax applies to the sale of certain assets, including shares, property, and businesses.
- Taxpayers must report their investment income and capital gains on their annual tax return, and pay any tax due by the end of April in the following year.