Chile

Branches of foreign corporations operating in Chile are taxed on their worldwide income, subject to the FCT at the rate applicable under the income tax system to which the branch is subject. Under the general regime, the FCT rate is 27% for commercial year 2026, 25.5% for 2027, 24% for 2028, and 23% from 2029 onwards. If the branch is subject to the SME regime, the transitional SME rates apply (12.5% for 2026 and 2027 and 15% for 2028), aligning with the 23% rate from 2029.

When distributing, remitting, or withdrawing amounts abroad, the 35% withholding tax (WHT) will be levied on such transaction. The FCT is creditable against the WHT according to the applicable rules; following Law No. 21,850, full creditability will apply to all taxpayers from commercial year 2029 (see the Taxes on corporate income section).