Concept of “resident”
The concept of “tax resident” is modified, establishing that any person who remains in Chile, whether continuously or not, for a period or periods exceeding 183 days in total within any twelve-month period will be a tax resident in Chile.
Personal Income Tax
- A new 40% bracket is created which will tax labor and personal income exceeding the following amounts:
- Labor Income Tax for monthly income over 310 UTM (approx. USD $20,700)
- Personal Income Tax for annual income over 310 UTA (approx. USD $247,400).
- In the case of the Personal Income Tax, a credit of 5% is granted on that part of the affected profit withdrawals or dividends that exceed the sum of 310 UTA (approx. USD $247,400). Thus, the maximum tax burden remains at 44.45%.
Disposition of bonds, debt titles and mining properties
- Subject to Personal Income Tax or withholding tax (“WHT”) on a cash basis.
- Personal Income Tax reassessment is not applicable.
- Non-taxable income limit of up to 10 UTA is applicable.