Countries › Chile › Guide › 5. FX and capital controls › Taking profits out of Chile: dividends and branch remittances, the 35 percent additional tax with corporate tax credit, restitution and the Ley 21.850 changes

Taking profits out of Chile: dividends and branch remittances, the 35 percent additional tax with corporate tax credit, restitution and the Ley 21.850 changes

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Last verified: 2026-10-26 · Status: Changing

Chile places no FX limit on paying dividends or remitting branch profits abroad: investors buy the currency freely at an agreed rate once taxes are paid (a statutory right for direct investment of US$5 million or more), and the bank reports the remittance. The tax is a 35 percent additional tax on the grossed up distribution, credited with the corporate tax already paid, so owners in treaty countries bear 35 percent in total. Others also restitute 35 percent of the credit on profits to the end of 2026, for 44.45 percent in total, and Ley 21.850 repeals restitution from 2027, keeping reduced rates for credits generated in tax years 2028 and 2029 while it cuts the corporate rate to 23 percent by 2029.

USD figures use the Central Bank exchange rate of CLP 986.58 per US dollar published in the Diario Oficial for 23 October 2026 (Ley Nº 18.840 art. 44 and CNCI Chapter I, Section VII). UF values use UF 1 = CLP 41,205.16 (23 October 2026) and UTM values use UTM 1 = CLP 72,151 (October 2026), both as published by the Servicio de Impuestos Internos. Conversions are for orientation only.

Key facts

Additional tax on dividends to non residents (before corporate tax credit)	35 %DL Nº 824 art. 58 Nº 2, as of 2026-10-26 · in force
Total tax burden on distributed profit for treaty country owners	35 %DL Nº 824 art. 58 and art. 63, as of 2026-10-26 · in force
Total tax burden on 2026 distributed profit for non treaty owners, with 35 percent restitution	44.45 %DL Nº 824 art. 63, final paragraph, as of 2026-10-26 · in force
Restitution rate for corporate tax credits generated in tax year 2028 (non treaty owners)	30 %Ley Nº 21.850 fifth transitory article Nº 1, as of 2026-10-26 · pending
Restitution rate for corporate tax credits generated in tax year 2029 (non treaty owners)	20 %Ley Nº 21.850 fifth transitory article Nº 2, as of 2026-10-26 · pending
Corporate income tax rate, general regime, commercial year 2026	27 %Ley Nº 21.850 sixth transitory article a), as of 2026-10-26 · in force
Corporate income tax rate, general regime, from commercial year 2029	23 %Ley Nº 21.850 sixth transitory article d), as of 2026-10-26 · pending
Deadline to pay withholding on remittances abroad	12th of the following month textDL Nº 824 art. 79, as of 2026-10-26 · in force
Access to the formal FX market to remit dividends	Free, at a freely agreed rate, after taxes (statutory right for FDI of US$5,000,000 or more) textLey Nº 20.848 art. 5 and art. 6; Ley Nº 18.840 art. 39, as of 2026-10-26 · in force
Tax treaties in force listed by the SII	37 treatiesSII list of conventions in force, as of 2026-10-26 · in force

The rule

1. A foreign investor with foreign direct investment of US$5,000,000 or more under Ley Nº 20.848 has a statutory right to remit abroad the net profits its investment generates once all Chilean tax obligations are met, and to access the formal FX market to obtain the currency needed, at the exchange rate freely agreed. Other investors remit under the free exchange principle of Ley Nº 18.840 art. 39, since no FX restrictions are applied. No minimum holding period, prior authorization or registration of the dividend is required.
Cost to do it: No authorization fee; the cost is the additional tax and the bank's FX spread.Ley Nº 20.848, framework law for foreign direct investment, Ley Nº 20.848 art. 2, 3, 5 and 6; Ley Nº 18.840 art. 39, 2015-06-25 official text · verified 2026-10-26

2. Payments and remittances of profits and other returns on investments and capital contributions from abroad are governed by the Compendium rules in force on the date of payment. When sent from Chile they go through the formal market and are reported by the bank; when paid abroad the Chilean company reports them directly to the Central Bank.FX Compendium (CNCI) approved by Central Bank Agreement Nº 2617-03-240125, in force from 1 January 2026, CNCI Chapter II, Letter B, Section IV, Nº 22 and 34, 2024-01-30 official text · verified 2026-10-26

3. Persons without domicile or residence in Chile pay 35 percent additional tax on all profits and other amounts that Chilean companies distribute to them as shareholders. Branches and other permanent establishments of foreign entities pay it on profits remitted abroad or withdrawn. The base is increased by an amount equal to the first category (corporate) tax credit, and the credit is then deducted from the additional tax, so the combined burden on the pre tax profit is 35 percent.
Example: Profit of CLP 98,658,000 taxed at 27 percent leaves CLP 72,020,340; grossed up base CLP 98,658,000, additional tax CLP 34,530,300 less credit CLP 26,637,660 = CLP 7,892,640; net to a treaty country parent CLP 64,127,700. / US$100,000 profit: US$27,000 corporate tax, US$8,000 additional tax, US$65,000 net.Decreto Ley Nº 824, Ley sobre Impuesto a la Renta, Art. 58 Nº 1 and Nº 2 and art. 63, first and second paragraphs, 1974-12-31 official text · verified 2026-10-26

4. Shareholders who use a corporate tax credit accumulated in the SAC register that is subject to restitution must restitute 35 percent of that credit as a higher additional tax. Restitution does not apply to residents of countries with a tax treaty in force with Chile who are the beneficial owners of the distribution, where the treaty makes corporate tax deductible from the additional tax or has a clause with the same effect.
Example: On the same CLP 98,658,000 profit, a non treaty parent restitutes CLP 9,323,181 (35 percent of CLP 26,637,660), netting CLP 54,804,519. / US$9,450 restitution; total burden US$44,450 or 44.45 percent; net US$55,550.Decreto Ley Nº 824, Ley sobre Impuesto a la Renta, Art. 63, final paragraph, 1974-12-31 official text · verified 2026-10-26

5. Ley Nº 21.850 repeals the restitution rule from 1 January 2027. Between 1 January 2027 and 31 December 2028, however, corporate tax credits generated by companies under the general regime still go to the SAC register with restitution of 30 percent for credits generated in tax year 2028 and 20 percent for credits generated in tax year 2029. Credits are allocated to distributions in order: first those accumulated up to 31 December 2026 (under the rules in force at that date), then those generated in commercial year 2027, then 2028. Treaty residents keep the art. 63 exemption from restitution for those years.Ley Nº 21.850, National Reconstruction and Economic and Social Development Law, Art. 9 and fifth transitory article, 2026-10-17 official text · verified 2026-10-26 · changed: Ley Nº 21.850 (Diario Oficial 17 October 2026) repeals the restitution of the corporate tax credit from 1 January 2027, with transitional restitution of 30 and 20 percent for credits generated in tax years 2028 and 2029.

6. The corporate (first category) tax rate for companies under the general regime falls from 27 percent for income of commercial year 2026 to 25.5 percent for 2027, 24 percent for 2028 and 23 percent from 2029. Because the corporate tax is credited against the 35 percent additional tax, a lower rate shifts tax from the company to the dividend withholding, but leaves the total burden for treaty country owners at 35 percent.
Example: On CLP 98,658,000 of 2029 profit: corporate tax CLP 22,691,340, additional tax CLP 11,838,960, net CLP 64,127,700 to a treaty country parent. / US$100,000 of 2029 profit: US$23,000 plus US$12,000, US$65,000 net, the same total as in 2026.Ley Nº 21.850, National Reconstruction and Economic and Social Development Law, Sixth transitory article; art. 8 Nº 3 (amending DL Nº 824 art. 20), 2026-10-17 official text · verified 2026-10-26 · changed: Ley Nº 21.850 (Diario Oficial 17 October 2026) sets a phased cut of the general corporate rate from 27 percent (2026) to 23 percent (from commercial year 2029).

7. Whoever pays, distributes, remits or credits income subject to additional tax must withhold it at the applicable rate, after grossing up the base for the corporate tax credit where the company is under the general or Pro Pyme regime, and must pay the withholding by the 12th of the month after the payment.
Example: A dividend paid on 15 December 2026 must have its withholding paid by 12 January 2027.Decreto Ley Nº 824, Ley sobre Impuesto a la Renta, Art. 74 Nº 4 and art. 79, 1974-12-31 official text · verified 2026-10-26

8. The SII lists 37 tax treaties in force, including the treaty with Argentina, applicable in Chile from 1 January 2017. Whether a given treaty removes restitution depends on its dividend clause, which the art. 63 exemption requires to make corporate tax deductible from the additional tax (or to have equivalent effect).Servicio de Impuestos Internos, list of international tax conventions in force; Decreto Ley Nº 824, Ley sobre Impuesto a la Renta, DL Nº 824 art. 63, final paragraph, 2017-01-01 official text · verified 2026-10-26

Step	Treaty country parent (credit clause)	Non treaty parent
Pre tax profit	US$100.00 (CLP 98,658)	US$100.00 (CLP 98,658)
Corporate tax at 27 percent	US$27.00 (CLP 26,638)	US$27.00 (CLP 26,638)
Dividend paid	US$73.00 (CLP 72,020)	US$73.00 (CLP 72,020)
Additional tax 35 percent on grossed up US$100, less US$27 credit	US$8.00 (CLP 7,893)	US$8.00 (CLP 7,893)
Restitution, 35 percent of the US$27 credit	None	US$9.45 (CLP 9,323)
Net received abroad	US$65.00 (CLP 64,128)	US$55.55 (CLP 54,805)
Total burden	35 percent	44.45 percent

A US$100 dividend out of Chile from 2026 profit taxed at 27 percent (DL Nº 824 art. 58, 63 and 74; Ley Nº 21.850). CLP at 986.58 per US dollar.

Commercial year	Corporate tax	Net additional tax on a dividend	Total for treaty country owner
2026	27 percent	8 points	35 percent
2027	25.5 percent	9.5 points	35 percent
2028	24 percent	11 points	35 percent
2029 onward	23 percent	12 points	35 percent

General regime corporate tax rate and the split of a 35 percent total burden for treaty country owners, by commercial year (Ley Nº 21.850 sixth transitory article).

Worked example

A Chilean SpA owned by a Canadian parent earns US$1,000,000 (CLP 986,580,000) in 2026 and pays US$270,000 corporate tax. In 2027 it distributes the remaining US$730,000 (CLP 720,203,400). It grosses up the base to US$1,000,000, applies 35 percent (US$350,000) less the US$270,000 credit and withholds US$80,000 (CLP 78,926,400), paid by the 12th of the following month.
The SpA buys US$650,000 at a rate it negotiates with its bank and wires it to Canada; the bank reports the remittance to the Central Bank. No Central Bank approval or minimum holding period applies.
If the credit used comes from the SAC register with restitution and the parent were resident in a country without a treaty, a further 35 percent of the US$270,000 credit, US$94,500, would be due for 2026 profits. Whether a treaty owner escapes restitution depends on the treaty's dividend clause (art. 63).
For an Argentine parent, Chile applies the Chile Argentina treaty listed by the SII; the Argentine tax and FX side of receiving the dividend is covered in the Argentine guide.

Step by step

1. Approve the dividend under the company's bylaws and corporate law (see the entity pages).
2. Check the art. 14 tax registers to see which corporate tax credits (with or without restitution) attach to the distribution, and in what order after 2026 under Ley Nº 21.850.
3. Confirm the shareholder's residence and treaty position; get a tax residence certificate if a treaty applies.
4. Compute the gross up, the 35 percent additional tax, the credit and any restitution, and withhold.
5. Pay the dividend through a Chilean bank, telling it the payment is a profit remittance on a reported investment; the bank reports it to the Central Bank.
6. Pay the withholding by the 12th of the following month.

Common traps

Assuming the total is always 35 percent. Until restitution ends, non treaty owners can bear 44.45 percent on 2026 profits, and transitional restitution of 30 and 20 percent survives for credits generated in tax years 2028 and 2029.
Assuming every treaty removes restitution. The art. 63 exemption depends on a treaty clause making corporate tax deductible from the additional tax, or one with the same effect.
Reading the lower corporate rate as a lower total. For treaty country owners the 35 percent total stays the same; only the split between corporate tax and withholding changes.
Paying a dividend through an offshore account and skipping the Central Bank report. Payments abroad on reported investments are reported directly by the Chilean company.
Missing the 12th of the month deadline. Late payment of withheld tax is fined at 10 percent plus 2 percent per month of delay, up to 30 percent (20 and 60 percent if the SII detects the omission in an audit), on top of inflation adjustment and interest (Código Tributario art. 53 and art. 97 Nº 11).

Sources

Related: Chile country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide

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