Corporate - Branch income

Last reviewed - 15 December 2020

Branches of foreign corporations operating in Chile are taxed on their worldwide income, subject to the FCT at the corresponding tax rate that varies depending on the income tax system to which the branch is subject to. If the branch is subject to the SME system, the FCT rate is 25%. If the branch is subject to the PIS, it is subject to an FCT rate of 27%.

When distributing, remitting, or withdrawing amounts abroad, the 35% WHT will be levied on such transaction. The FCT is creditable against the WHT according to the SME or PIS rules (see the Taxes on corporate income section).