Chile

Chile - Civil Law
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Chile taxes

If you want to establish a company in Chile, this article explains the tax laws for a LLC (SRL) which is the most common company type in Chile.

Chile levies corporate tax on resident entities worldwide income. The established rate for income earned abroad, from our research, and these things do change, is 25.5%. Chile does not have major incentives to bring in income earned abroad. The effective CIT rate is 25.5% and will be 27% in 2018 onwards. This ranks Chile as 123rd when compared to corporate tax rate worldwide.

The valued added tax rate in Chile is 19.00%, that ranks Chile as 127th overall in terms of value added tax rate worldwide. In terms of other taxation, an employer will contribute 8.17% to the equivalent of a social security fund and an employee will contribute 17.00%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 125hours. Contributing to this is the number of yearly labor tax payments, which is 1 in CL.

Thin cap laws are in play. This refers to any sort of laws on a business and the debt-to-asset ratios. Dividends received by Chilean entities from other Chilean entities are not subject to the CIT. However, when these dividends are distributed up-stream, and the ownership chain reaches the final Chilean individual owners or the foreign shareholders, they will be taxed at 35%. Dividends are distributions of a company profit, voted on by the board, to shareholders.Dividends can be issued as stock, cash, or property. Capital Gains are generally subject to Corporate Income Tax. A capital gains tax is levied on the profits that a corporation or natural person realizes when they sell sells a capital asset for a price that is higher than the purchase price.

The interest withholding tax rate is estimated at 35%. This means that the taxman expects relevant legal entities to automatically withhold 35% of money remitted abroad on interests. Interests paid to a foreign financial institution may be subject to a reduced rate of 4%. The dividends withholding tax rate is 35%. This should be interpreted that usually the relevant tax authorities expects LLC (SRL)'s to pay tax on 35% of dividends paid to non-residents. The royalties withholding tax rate is 30%. This means that the tax authorities expects legal entities to pay tax on at least 30% of payments abroad on royalties. Certain royalty payments are subject to a reduced tax rate of 15%, unless recipient is resident in a listed tax haven. Withholding taxes may be reduced or exempted under tax treaties.
There is no known tax on wealth in Chile. There are inheritance and real property taxes in Chile. We are aware of commonly used credits for innovation spend that include tax relief here.

The above is not tax or legal advice for your individual facts and circumstance. Incorporations.io can refer you to an expert in Chile who will resolve your doubts. Want to work together? Click the free consultation button above.

It takes approximately 42 hours to file and prepare documents for a Chile Civil Law.
The corporate tax is approximately 25.5% which is 123 in the world.

Owners of a company in Chile are allowed to carry back a loss and may be allowed to carry forward a loss for 100 years.

The vat rate in Chile is 19% which ranks 127 in the world.

Patent box
RND credit
Wealth tax
Estate tax
Transfer taxes
Asset taxes
Capital duties
30Tax treaties
26%Offshore Tax
25.5%Corp rate
100Loss carryback years
42Corporate time
19%VAT rate
25.5%Capital gains
2018AEOI planned

Read this to learn about incorporating a company in
Chile

We can help you form a company in Chile. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Chile, which is required by law.

We can help you with your incorporations needs for an initial payment of just $1000.

Easy Step by Step Process:
The standard process typically takes between two (2) to three (3) weeks depending on when we receive all the required information from you. Once we receive your information, we will email you a complete set of documents for your review within 3 working days upon confirmation of payment. After executing the documents, you will need to mail them to us and we will formally submit your application for filing with the Registry. The Registry will then take about 3-8 working days to process the incorporation and produce certificates necessary for opening your bank account.

Applying for Your Bank Accounts:
Incorporations.IO maintains close working relationship within our extensive network of partner banks to help you apply for and receive banking services that are most appropriate to your specific situation. From the time of verification of incorporation it can take (1) one week to (2) two weeks to apply for and receive a bank account. We work primarily with banks that allow for remotely opened accounts to ensure you are ready to do business as soon as possible.

Applying for Payment Processing:
We include introductions to payment processors or merchant accounts with all of our incorporation services. Whether you just need standard credit card processing or specialized services for high risk processing, we have partners that can assist you and are happy to help you with introductions that can empower your business.

Start Online or via Phone:
We can get started for you whenever you are ready via a US$1000 initial payment via credit card. I get notified whenever a payment is made here and would send out the welcome letter and initial forms we would need within 12 hours. If you prefer, we can also process via a phone or Skype call.

Chile Tax Treaties

CountryTypeDate signed
South Korea
DTC 2002-04-18
Sweden
DTC 2004-06-04
Canada
DTC 1998-01-21
New Zealand
DTC 2003-12-10
Uruguay
TIEA2014-09-12
Switzerland
DTC 2008-04-02
Russia
DTC 2004-11-19
Ireland
DTC 2005-06-02
Thailand
DTC 2006-09-08
South Africa
DTC 2012-07-11
Ecuador
DTC 1999-08-26
Norway
DTC 2001-10-26
Guernsey
TIEA2012-09-24
Peru
DTC 2001-06-08
Colombia
DTC 2007-04-19
Australia
DTC 2010-03-10
Croatia
DTC 2003-06-24
Malaysia
DTC 2004-09-03
Spain
DTC 2003-07-07
Brazil
DTC 2001-04-03
Denmark
DTC 2002-09-20
France
DTC 2004-06-07
Mexico
DTC 1998-04-17
Belgium
DTC 2007-12-06
United Kingdom
DTC 2003-07-12
Portugal
DTC 2005-07-07
Poland
DTC 2000-03-10
United States
DTC 2010-02-04
Austria
DTC 2012-12-06
Paraguay
DTC 2005-08-30

Country Info

National Flag of
República de Chile (spa)
Currency
CLF
Area Code
+56
Capital
Santiago
Region
South America
Native Languages
Spanish