Latam Desk | Chile

Why Chile?

National Population:

+17,9 million people

Growth Projection by 2027:

3.02%

Main Characteristcs:

Chile stands out for its abundance of natural resources, its stability of the macroeconomic system and growth potential, its low level of risk, and its high-level infrastructures.

It is the first South American economy to join the OECD.

Its economy is one of the strongest and most integrated into Latin America. It has numerous free trade agreements and double taxation treaties that allow trading underprivileged tariff conditions, giving access to more than 1 billion potential consumers.

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Growing Industries and Market Opportunities

Agriculture Industry

Energy Industry

Mining

Main Tax Rates in Country

Corporate Taxes

25% - Attributed Income Regime

27% - Partial Credit Allocation Regime

Dividends

Dividends paid between companies residing in the country are not subject to tax.

Gains distributed abroad to non-residents are subject to an additional 35% withholding. Corporate taxes can be used a total or partially as credits, under the regime applicable to the company and whether dividends are paid to a treaty country or not.

Employment Taxes

Social Security:	0.95% (employer)
Unemployment Insurance - Indefinite Term:	2.4% (employer) / 0.6% (employee)
Unemployment Insurance - Fixed Term:	3% (employer)
Invalidity and Survival Insurance:	1.53% (employer)
Health Insurance:	7% (employee)
Pension Contribution:	10% (employee)

VAT

19%

Remittance of profits

Under the Attribution Income Regime, a 35% rate applies when the profits attributable to the branch accrue, with a credit granted by income tax of the first category of 25% paid by the branch.

Under the Partial Credit Allocation Regime, a 35% rate applies to the remittance of profits to the head office with a total or partial credit granted to the first premium income tax paid by the branch, depending on whether the head office is located in a tax-treated country.

Doing Business in Chile