Chile · Enacted legislation
Chile implements corporate tax and investment package
On 19 October 2026, Chile’s Internal Revenue Service issued Resolution 141 to implement the optional substitute tax created by Law 21,850, a business-tax package published on 17 October that cuts the corporate rate, restores full integration and creates new investment incentives.
- Official document:
- Law 21,850 for National Reconstruction and Economic and Social Development
- Development date:
- 2026-10-19
Corporate tax falls as integration returns
For businesses under the general or partially integrated regime, the first-category income tax rate remains 27% for commercial year 2026, then falls to 25.5% for 2027, 24% for 2028 and 23% from 2029. Law 21,850 also phases out the requirement for shareholders to restore part of the corporate tax credit: the tax authority’s implementation schedule shows restoration of 30% in tax year 2028, 20% in 2029 and zero from 2030. Groups should model the rate and credit changes together rather than treating the 23% headline as immediately effective.[2][3]
A payroll credit targets exported knowledge services
New Income Tax Law article 33 ter grants first-category taxpayers keeping full accounts a credit equal to 15% of the qualifying Chilean payroll attributable to exported knowledge-based services. The rate rises by five percentage points for employees working mainly from a tax head office or branch outside the Santiago Metropolitan Region, or in a rural commune within it. Eligible services must be capable of remote delivery, be classified as exports by Customs, be supplied to non-residents and be used abroad. The annual cap is 75 monthly tax units for each worker, and the credit generally cannot be combined with another payroll-based incentive.[2][3]
Large projects can contract for tax stability
From 1 January 2027, foreign and local investors committing at least USD50 million to specified mining, industrial, forestry, energy, infrastructure, telecommunications, technology or medical and scientific projects may apply for an investment contract. The stability period is 10 years for investments below USD100 million, 15 years from USD100 million to below USD350 million, and 20 years from USD350 million, measured from start-up. The protected project pays a 1.5-percentage-point corporate-tax premium. For foreign investors, the contract can also stabilise VAT and customs treatment for imported capital machinery during the investment period. It does not authorise the project itself, and audited-reporting, separate-accounting, leverage and reorganisation-notification conditions apply.[2]
Capital-market and transitional rules need separate tracking
From 1 January 2027, qualifying gains covered by Income Tax Law article 107 move from a 10% single tax to non-income treatment. Separately, companies with qualifying accumulated FUR or STUT balances may elect an optional 10% tax in place of final taxes within eight months of publication, without the associated corporate tax credits. A one-year foreign-asset regularisation regime begins on 1 January 2027, using a 7% rate where qualifying funds are brought into Chile and 10% where they are not, subject to the law’s disclosure, investment and anti-money-laundering safeguards.[2][3]
Implementation is still moving
The package also contains employer credits for catastrophic-disease treatment, housing and property-tax measures, training-credit restrictions and tax-administration changes. The Internal Revenue Service says implementation will require 13 circulars and 17 resolutions; Resolution 141 of 19 October already established the declaration and payment form for the substitute tax. Multinational groups should map each measure to its own commencement date and monitor the implementing instruments rather than applying the publication date across the package.[2][3][4]
Official sources
- [1] Law 21,850 for National Reconstruction and Economic and Social Development
Official Gazette of the Republic of Chile · Document date: 2026-10-17
Complete 46-page official publication read. Permanent business-tax provisions at PDF pages 5–8 and 19–23; transitional tax provisions at pages 30–43; Constitutional Court and Comptroller material at pages 44–46.
- [2] Consolidated text of Law 21,850
Library of the National Congress of Chile · Document date: 2026-10-17
Complete consolidated law reviewed. Articles 7–9 cover payroll credits, the corporate rate, article 107 and integration; article 26 covers investment stability; sixth to ninth and eleventh transitory articles cover staged commencement and the substitute tax; the foreign-asset regime and remaining business-tax provisions were included in the package checklist.
- [3] Tax authority summary of Law 21,850 implementation
Chilean Internal Revenue Service · Document date: 2026-10-19
Complete official notice read: lines 5–10 identify the enacted package and implementation portal; lines 11–30 list the permanent and transitional measures; lines 31–48 give the integration and corporate-rate timetable; lines 49–51 describe planned implementing instruments.
- [4] Resolution 141 establishing the Law 21,850 substitute-tax declaration and payment form
Chilean Internal Revenue Service · Document date: 2026-10-19
Complete three-page resolution read. Considerandos and resolutives 1–4 implement the declaration and payment mechanism through Form 50 for the substitute final-tax regimes under the eleventh and twelfth transitory articles of Law 21,850.