Tax Insight

Chilean tax bill would lower corporate rate, integrate tax system, and provide stability regime

Insight
5 minute read
May 22, 2026

What happened?

The Chilean Government has submitted to the House of Representatives the ‘Bill for National Reconstruction and Economic and Social Development’ (‘the Bill’), a 203-page document that identifies key measures to advance the government’s agenda, including proposals for tax reform.

Why is it important?

Among other measures, the Bill includes a gradual reduction of the corporate income tax rate from 27% to 23%; restates the full creditability of the Chilean corporate income tax against the 35% withholding tax applicable on dividend payments to non-resident shareholders; proposes a new framework under which foreign investors could agree with the Chilean Government that applicable tax rules remain unchanged for a specified period of time (i.e., tax stability regime); and eliminates the 10% tax on capital gains realized on the disposition of shares traded in the Chilean stock market.

Actions to consider

Multinational companies with presence in Chile should monitor the legislative process to assess whether there may be changes in the current tax system that could impact their structures and transactions.