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  • Service: Tax, International Corporate Tax, Global Indirect Tax, Mergers & Acquisitions, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 9/27/2012

Chile - Tax reform is enacted; changes for corporate taxpayers 

September 27:  In Chile, a tax reform package was enacted 24 September 2012.

The tax reform proposals were first introduced in May 2012, and then were re-introduced in August 2012 when there was insufficient support in the legislature for the first package. See TaxNewsFlash-Americas: Chile - New tax proposals would affect corporations, foreign investors

In general, the legislation that was eventually enacted this week reflects the August 2012 version of the tax reform package, and thus includes the following measures:


  • Corporate income tax rate increases to 20%
  • Changes to the treatment of “upstream” loans from a Chilean corporate taxpayer to a related-party affiliate located outside of Chile
  • Expansion of the look-through rule for indirect transfers of Chilean assets
  • Equalization of tax treatment between corporations and limited liability companies / passthrough entities
  • Amortization of goodwill on reorganizations / mergers
  • Taxation of foreign taxpayers with a branch or permanent establishment (PE) in Chile
  • Changes to the rules for foreign tax credits
  • Modernization of the transfer pricing rules
  • Changes to the withholding tax rules
  • Stamp tax rate reduction
  • Tax exemption available for certain “standard” software
  • Revised tax rates for individual income tax
  • Individual income tax credit for education expenses / tuition


For more information, contact a tax professional with KPMG in Chile:


Juan Pablo Guerrero


Francisco Lyon


Rodrigo Stein




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