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flag Chile Chile: Business Environment

In this page: Accounting Rules | Tax Rates | Intellectual Property | Legal Framework | Standards | Business Practices


Accounting Rules

Tax Year
The fiscal year begins on January 1-st and ends on December 31 of the same year.
Accounting Standards
Chilean GAAP (generally accepted accounting principles), and progressively adopting the IFRS (International Financial Reporting Standards).
Accounting Regulation Bodies
Ministry of Finance
Accounting Reports
The basic financial statements include: the balance sheet, the statement of income, the statement of cash flows, and the notes to the financial statements.
Publication Requirements
Companies have to produce their annual financial statement to the shareholders.
The account books must be published in Spanish and use the Chilean currency as reference.
Professional Accountancy Bodies
Colegio Contadores , Chile National College of Accountants
Certification and Auditing
External audits are compulsory for companies with capital and foreign investors with repatriated profits. You can contact an external auditor: Deloitte, KPMG, Ernst & Young, PricewaterhouseCoopers,
Accounting News
Finance news online
"El Mercurio" Financial News
Ernst & Young Chile
IAS Plus Chile

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Tax Rates

Consumption Taxes

Nature of the Tax
Impuesto al Valor Agregado (IVA) - Value Added Tax (VAT)
Tax Rate
Reduced Tax Rate
Are exempted of VAT exports, certain financial services, life insurance, news services, technical services, consultancy and transport.

The import of raw materials used in the production and processing of export goods may be exempted from VAT, subject to approval by the tax department.

Other Consumption Taxes
A tax of 52.6% is applied to cigars; in the case of cigarettes the tax is 60.5% and tobacco 59,7%. These taxes apply to the selling price to the final customer.  A tax on fuel is applied to producers and importers. Diesel fuel is subject to a rate of 1.5 UTM per m3. Petrol for cars is subject to a rate of 6 UTM per m3. Alcoholic and non-alcoholic beverages are subject to a tax of 15% to 27%, according to the alcohol content and luxury goods (jewellery, precious stones, etc.) are subject to an addition tax of 15%.

Learn more about Service Providers in Chile on, the Directory for International Trade Service Providers.

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Corporate Taxes

Company Tax
Tax Rate For Foreign Companies
Non-domiciled or non-resident companies are taxed on their income from Chilean sources only. Resident companies are taxed on their worldwide income.
Capital Gains Taxation
Capital gains are included in gross income subject to First Category tax with certain exceptions: capital gains are tax exempt if derived from transactions of first public offerings and listed corporations.
Main Allowable Deductions and Tax Credits
Expenses are deductible for depreciation and depletion, net operating losses, payments to foreign affiliates, taxes.
Other Corporate Taxes
There is also a stamp tax, municipal license fee, real property tax, social security contributions.
Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Country Comparison For Corporate Taxation

  Chile Latin America & Caribbean United States Germany
Number of Payments of Taxes per Year 6.0 30.0 11.0 9.0
Time Taken For Administrative Formalities (Hours) 291.0 367.0 175.0 207.0
Total Share of Taxes (% of Profit) 28.1 47.2 46.7 46.8

Source: Doing Business - Last Available Data.

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Individual Taxes

Tax Rate

Personal Income tax The rate depends on monthly units of levy. The value of a unit in CLP is revalued each month. Progressive rates up to 40%.
Lower than 13,5 units 0%
13,5-30 units 5%
30-50 units 10%
50-70 units 15%
70-90 units 25%
90-120 units 32%
120-150 units 37%
Beyond 150 units 40%
Allowable Deductions and Tax Credits
Tax credit of 10%; and deductions for interest paid on a mortgage for the construction or acquisition of a dwelling, and for pension contributions.
Special Expatriate Tax Regime
There are no fiscal advantages for expatriates.

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Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
See the list of the convention signed
Withholding Taxes
Dividends: 35%, Interest: 35%, Royalties: 30%

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Sources of Fiscal Information

Tax Authorities
Other Domestic Resources
Information on administrative procedures
Superintendance of banks and financial institutions

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Learn more about Taxes and Accounting in Chile on, the Directory for International Trade Service Providers.

Intellectual Property

National Organizations
The bodies in charge of protecting patents and trademarks in Chile is the Instituto Nacional de Propiedad Industrial (INAPI) in Santiago and the Departamento de Derechos Intelectuales.
Chile signed the Agreement of Paris for the protection of industrial property, as well as the agreement establishing the World Intellectual property Organization (WIPO). Patents that were obtained in other countries are valid in Chile until expiration of their normal date of validity.
Regional Organizations
The issue of intellectual property is addressed in the treaty of MERCOSUR which includes Chile, Argentina, Brazil, Paraguay, Uruguay and Bolivia.
International Membership
Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention For the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)

National Regulation and International Agreements

Type of property and law Validity International Agreements Signed
Patent Law No. 19.039
16 years maximum Patent Cooperation Treaty (PCT)
Patent Law No. 19.039
10 years Trademark Law Treaty
Patents Law No 19.039
5 years, renewable  
Intellectual Property Law 17336
For the author during his lifetime.  For special cases see Copyright Law Chile Berne convention For the Protection of Literary and Artistic Works
Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication of Their Phonograms
Rome ConventionFor the Protection of Performers, Producers of Phonograms and Broadcasting Organizations
WIPO Copyright Treaty
WIPO Performances and Phonograms Treaty
Industrial Models
Patent law No. 19.039
5 years  

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Legal Framework

Independence of Justice
Judiciary is independent.
Equal Treatment of Nationals and Foreigners
Foreign nationals in the country can enjoy treatment at par with the natives from the judiciary, including commercial disputes.
The Language of Justice
Recourse to an Interpreter
Access to an interpreter is possible.
Sources of the Law and Legal Similarities
The main source of the law is the constitution of 1980 (amended several times). The country's legal system is based on Code of 1857 derived from Spanish law and subsequent codes influenced by French and Austrian law as well as various judicial reviews of the legislative acts by the Supreme Court. Chile has not accepted compulsory ICJ jurisdiction. In June 2005, Chile completed overhauled its criminal justice system to adopt a new US-style adversarial system.
Checking National Laws Online
Legal information portal "Wash Law"
Library of the Chile National Congress

Learn more about Lawyers and Legal in Chile on, the Directory for International Trade Service Providers.

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National Standards Organizations
National Standards Committee Chile
Integration in the International Standards Network
The National Standards Committee (INN) is a member of the International Organization of Standardization (ISO), of the International Electrotechnical Commission (IEC) and of the Pan American Standards Commission (COPANT).
Classification of Standards
Chilean Standards (NCh).
Online Consultation of Standards
A list of standards in use in Chile is available on the site of the National Standards Institute.
Certification Organizations
National Standards Committee Chile

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Business Practices

General Information
Kwintessential Chile, Information and help for business contact between countries.
E-Diplomat, Advice on foreign etiquette.
Opening Hours and Days
Banks: Monday to Friday, from 9.00 to 14.00.
Public administrations: from Monday to Friday from 9.00 to 14.00.
Businesses in the town centre: from Monday to Friday from 10.00 till 19.00 and on Saturday from 10.00 to 14.00.
Small businesses of district: from Monday to Friday from 10.00 to 13.00 and from 16.00 to 20.00.
Shopping centers: from Monday to Saturday from 10.00 to 21.00 and on Sunday from 11.00 to 20.00.
Supermarkets: every day from 8.00 to 21.00.

Public Holidays

New Year 1st January
Good Friday Varies
May Day 1st May
Navy Day 21st May
Feast of Saints Peter and Paul June - July
Feast of the Assumption 15th August
Fiestas Patrias 18th and 19th September
Hispanic World Day October
All Saints Day 1st November
Feast of the Immaculate Conception 8th December
Christmas 25th December

Periods When Companies Usually Close

Christmas, New Year and summer vacation period Businesses slow down during the summer and for a period from the end of December and the middle of February

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Last Updates: January 2015