Chile

Chile's Rankings
CategoryRankScore
Overall Rank2758.19
Corporate Taxes1100
Individual Taxes3540.65
Consumption Taxes2959.65
Property Taxes1267.72
Crossborder Taxes3734.39

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

Get email updates about global tax policy from the Tax Foundation.

Subscribe today!