With complex legislation surrounding tax matters for companies
in Chile, it is imperative to understand the laws so your business
remains compliant. It is the second year in which the major tax
reform changes are being applied to the tax collection process,
adding new challenges for businesses.
If your business is registered in Chile, you must pay Chilean
income tax on the worldwide income to the Chilean IRS (Servicio de
Impuestos Internos - SII). If your company is registered elsewhere,
but includes operations in Chile, you pay income tax on only your
Chilean-sourced income. The corporate income tax rate is 25% or
27%, depending on the tax regime chosen by the company. The
corporate tax paid by the company is creditable against the
withholding tax applicable to the distribution of profits to the
company's partners or shareholders.
