Chile
| Category | Rank | Score |
|---|---|---|
| Overall Rank | 27 | 58.19 |
| Corporate Taxes | 1 | 100 |
| Individual Taxes | 35 | 40.65 |
| Consumption Taxes | 29 | 59.65 |
| Property Taxes | 12 | 67.72 |
| Crossborder Taxes | 37 | 34.39 |
Chile ranks 27th overall on the 2021 International Tax Competitiveness Index, five spots better than in 2020.
Strengths
- As a response to the COVID-19 pandemic, Chile temporarily allows businesses to immediately write off investments in buildings and machinery and to immediately amortize intangibles.
- Chile temporarily reduced its corporate income tax rate to 10 percent for most of its businesses.
- Chile has the second lowest tax wedge on labor among OECD countries, at 7 percent, compared to the OECD average of 34.6 percent.
Weaknesses
- Labor and consumption taxes are complex, creating a serious compliance burden.
- The tax rate on capital gains was recently increased to 40 percent, well above the OECD average of 19.1 percent.
- Chile has a worldwide tax system, while most OECD countries have territorial provisions.
Learn more about the tax system in Chile