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Chile's mining royalty (Royalty Minero): who pays, the copper and non copper scales, the tax burden cap, monthly prepayments, CMF filings and where the money goes

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

Since 1 January 2024, anyone who extracts and sells concessible minerals in Chile is a mining operator under Ley Nº 21.591. Royalty Minero depends on the operator's sales, measured in tonnes of fine copper equivalent and averaged over six years together with related parties. Operators selling more than 50,000 tonnes, mostly copper, pay 1 percent of copper sales plus 8 to 26 percent of adjusted mining operating income. Other operators are exempt up to 12,000 tonnes and pay graduated rates above that. Total tax is capped at 46.5 percent of that income, or 45.5 percent up to 80,000 tonnes. The royalty is paid each April with the income tax return, and monthly provisional payments are made during the year. Operators must also file audited financial statements with the CMF.

USD figures use the Central Bank exchange rate of CLP 986.58 per US dollar published in the Diario Oficial for 23 October 2026 (CVE 2891564). Sales bands are set in tonnes of fine copper valued at the average London Metal Exchange Grade A price that the Chilean Copper Commission publishes in pesos each January, so the CLP equivalents in the examples are illustrative.

Key facts

Royalty margin component, effective maximum for margins over 20 up to 45 (copper operators over 50,000 t)	12 %Ley Nº 21.591 art. 3 Nº 2, as of 2026-10-26 · in force
Annual sales above which the ad valorem and margin components apply	50,000 t fine copper equivalentLey Nº 21.591 art. 2 and art. 3, as of 2026-10-26 · in force
Cap on royalty plus income taxes for operators with sales up to 80,000 t	45.5 %Ley Nº 21.591 art. 8, as of 2026-10-26 · in force
Default monthly provisional payment rate on mining sales	0.3 %Ley Nº 21.591 art. 7, as of 2026-10-26 · in force
Years over which sales are averaged to set the royalty band	6 yearsLey Nº 21.591 art. 5, as of 2026-10-26 · in force
Highest marginal rate for non copper or mixed operators over 50,000 t (margin band 80 to 85)	34.5 %Ley Nº 21.591 art. 4 Nº 3, as of 2026-10-26 · in force
Small miners excluded from the royalty, ore sold or processed per month	10,000 t per monthLey Nº 21.591 art. 11, as of 2026-10-26 · in force
Royalty Minero in force from	2024-01-01 dateLey Nº 21.591 first transitory article, as of 2026-10-26 · in force

The rule

1. Royalty Minero is a tax on mining operators: any natural or legal person that extracts concessible mineral substances and sells them in any productive state. The royalty is the sum of up to three components (art. 2, 3 and 4), depending on sales level and minerals. Its base is the adjusted mining operating taxable income (RIOMA), which is the taxable income from mining sales under the income tax law with the adjustments in art. 6. The mining operating margin is RIOMA divided by mining operating income, times 100. Small miners selling or processing up to 10,000 tonnes of ore a month, artisanal miners and pirquineros are outside the royalty.
Cost to do it: Compliance cost is the annual royalty computation inside the income tax return, plus the CMF financial statement filings in rule 6.Ley Nº 21.591, Ley sobre Royalty a la Minería, as amended by Ley Nº 21.647, Art. 1, art. 6 and art. 11; first transitory article, 2023-08-10 official text · verified 2026-10-26 · changed: Ley Nº 21.591, published on 10 August 2023, replaced the specific mining tax of DL Nº 824 art. 64 bis with Royalty Minero from 1 January 2024. Ley Nº 21.647 (Diario Oficial 23 December 2023) adjusted the definition of mining operating income and provides that references in other laws to the old specific mining tax are read as references to the royalty.

2. Operators with annual sales above the equivalent of 50,000 metric tonnes of fine copper pay an ad valorem component of 1 percent on annual copper sales. If RIOMA is negative, the ad valorem component is reduced by that negative amount, but not below zero. If more than 50 percent of their sales are copper, they also pay the margin component on RIOMA: 8 percent where the margin is 20 or less. For a margin over 20 up to 45, the rate is 8 + (12 minus 8)/(45 minus 20) × (margin minus 20), with an effective maximum of 12 percent. For a margin over 45 up to 60, it is 12 + (26 minus 12)/(60 minus 45) × (margin minus 45), with an effective maximum of 26 percent. Over 60 the rate is 26 percent. The margin component does not apply when RIOMA is negative.
Cost to do it: 1 percent of copper sales plus 8 to 26 percent of RIOMA, before the cap in rule 4.
Example: Copper sales of CLP 986,580 million and RIOMA of CLP 493,290 million give a margin of 50 and a margin rate of 12 + 14/15 × 5 = 16.67 percent: CLP 82,215 million, plus CLP 9,866 million ad valorem, a royalty of CLP 92,081 million before the cap test. / US$1,000 million of copper sales and US$500 million of RIOMA give US$83.3 million of margin component plus US$10 million ad valorem, US$93.3 million before the cap test. The 46.5 percent cap is US$232.5 million.Ley Nº 21.591, Ley sobre Royalty a la Minería, Art. 2 and art. 3, 2023-08-10 official text · verified 2026-10-26

3. Operators not covered by art. 3 (sales of 50,000 tonnes or less, or 50 percent or less of sales from copper) pay on RIOMA as follows. Up to 12,000 tonnes of fine copper equivalent: exempt. Over 12,000 up to 50,000 tonnes: a rate equal to the average per tonne of marginal rates of 0.4 percent (12,000 to 15,000 tonnes), 0.9 percent (15,000 to 20,000), 1.4 percent (20,000 to 25,000), 1.9 percent (25,000 to 30,000), 2.4 percent (30,000 to 35,000), 2.9 percent (35,000 to 40,000) and 4.4 percent (40,000 to 50,000). Over 50,000 tonnes: marginal rates on the parts of the margin, 5 percent up to a margin of 35, then 8, 10.5, 13, 15.5, 18, 21, 24, 27.5, 31 and 34.5 percent for each five point band up to 85, and 14 percent where the margin exceeds 85.
Cost to do it: Zero up to 12,000 tonnes; 0.4 to 4.4 percent bands between 12,000 and 50,000 tonnes; 5 to 34.5 percent margin bands above 50,000 tonnes for non copper or mixed operators.Ley Nº 21.591, Ley sobre Royalty a la Minería, Art. 4, 2023-08-10 official text · verified 2026-10-26

4. Sales bands use the average annual sales of the last six business years, or of the years with sales if fewer. They count the total sales of mining products of all related persons that are also mining operators, using the Código Tributario art. 8 Nº 17 definition of related persons, extended to permanent establishments and funds. A tonne of fine copper is valued at the average London Metal Exchange Grade A price for the year, which the Chilean Copper Commission publishes in pesos within the first 30 days of each year.
Cost to do it: No separate charge; the effect is that groups cannot split operations to stay under a band.Ley Nº 21.591, Ley sobre Royalty a la Minería, Art. 5, 2023-08-10 official text · verified 2026-10-26

5. Total burden is capped at 46.5 percent of RIOMA. The test adds first category tax actually paid, final taxes counted as whatever amount brings the total income tax load to 35 percent of taxable income, and the royalty. If the sum exceeds the cap, the royalty is reduced so the total equals the cap. The cap is 45.5 percent for operators whose sales under art. 5 are up to 80,000 tonnes of fine copper equivalent.
Cost to do it: No cost; the cap reduces the royalty where it binds.
Example: With RIOMA of CLP 493,290 million, the cap is CLP 229,380 million for an operator over 80,000 tonnes, or CLP 224,447 million at 45.5 percent for one up to 80,000 tonnes. / With RIOMA of US$500 million, the cap is US$232.5 million, or US$227.5 million at 45.5 percent.Ley Nº 21.591, Ley sobre Royalty a la Minería, Art. 8, 2023-08-10 official text · verified 2026-10-26

6. The royalty accrues annually and is declared and paid in April with the annual income tax return (Ley sobre Impuesto a la Renta art. 69). During the year operators make monthly provisional payments (PPM) as a percentage of gross mining sales, set from the previous year's weighted rate and adjusted by how far last year's PPM fell short of or exceeded the royalty due. Where no rate can be set, for example in the first year or with no RIOMA last year, the rate is 0.3 percent. PPM are adjusted quarterly in line with the average copper price that the Ministry of Finance fixes by resolution, and are paid in the month after the income is earned, together with income tax PPM. Operators must send the CMF audited annual individual and consolidated financial statements, with a note on ownership, plus quarterly statements; failure is sanctioned under DL Nº 3.538.
Cost to do it: PPM of 0.3 percent of monthly mining sales where no other rate applies, credited against the annual royalty; external audit fees for the CMF statements.
Example: A first year operator with monthly mining sales of CLP 9,866 million pays a PPM of CLP 29.6 million that month. / Monthly sales of US$10 million give a PPM of US$30,000.Ley Nº 21.591, Ley sobre Royalty a la Minería, Art. 7, art. 9 and art. 10, 2023-08-10 official text · verified 2026-10-26

7. Part of the revenue is shared with regions and municipalities. A Regional Productivity and Development Fund, in force from 1 January 2025, finances regional governments' productive investment and is distributed like the national regional development fund, with amounts set each year in the Budget Law. From the same date the municipal common fund law gets two extra State contributions. One goes to communes in mining regions that host refineries, smelters, active tailings with significant health impact, priority abandoned tailings or mainly mining ports. The other, equal in pesos to 2,500,000 UTM, goes to the communes most dependent on the common fund or with the lowest own income.
Cost to do it: No cost to operators; this explains the local stake in mining projects.
Example: The 2,500,000 UTM municipal contribution equals CLP 180,377.5 million at the October 2026 UTM. / About US$182.8 million.Ley Nº 21.591, Ley sobre Royalty a la Minería, Art. 13 and art. 16; fourth and fifth transitory articles, 2023-08-10 official text · verified 2026-10-26

8. Operators that had tax invariability on 1 January 2022 under DL Nº 600 art. 11 ter, Ley Nº 20.026 or Ley Nº 20.469 keep the rules then in force until their stability ends, and only then move to Royalty Minero. New large investments can freeze the royalty rules under the new tax stability contracts of Ley Nº 21.850 from 1 January 2027 (see investing/tax-stability-contracts).
Cost to do it: Under Ley Nº 21.850 the price of stability is a first category tax rate 1.5 percentage points above the contract rate.Ley Nº 21.591, Ley sobre Royalty a la Minería; Ley Nº 21.850, Ley Nº 21.591 third transitory article; Ley Nº 21.850 art. 26, 2023-08-10 official text · verified 2026-10-26

Margin	Rate	Rate at sample margins
20 or less	8%	8% at 15
Over 20 up to 45	8 + 0.16 × (margin minus 20), max 12%	9.6% at 30; 11.2% at 40
Over 45 up to 60	12 + 0.9333 × (margin minus 45), max 26%	16.67% at 50; 21.33% at 55
Over 60	26%	26%

Copper operators over 50,000 t with more than 50 percent copper sales: margin component on RIOMA (Ley Nº 21.591 art. 3; formulas from the Diario Oficial text of 10 August 2023). Margin = RIOMA / mining operating income × 100.

Sales (t fine copper equivalent)	Band	Marginal rate on RIOMA
Up to 12,000	All	Exempt
12,000 to 50,000	12,000 to 15,000	0.4%
12,000 to 50,000	15,000 to 20,000	0.9%
12,000 to 50,000	20,000 to 25,000	1.4%
12,000 to 50,000	25,000 to 30,000	1.9%
12,000 to 50,000	30,000 to 35,000	2.4%
12,000 to 50,000	35,000 to 40,000	2.9%
12,000 to 50,000	40,000 to 50,000	4.4%
Over 50,000	Margin up to 35	5%
Over 50,000	Margin 35 to 40 / 40 to 45 / 45 to 50	8% / 10.5% / 13%
Over 50,000	Margin 50 to 55 / 55 to 60 / 60 to 65	15.5% / 18% / 21%
Over 50,000	Margin 65 to 70 / 70 to 75 / 75 to 80	24% / 27.5% / 31%
Over 50,000	Margin 80 to 85	34.5%
Over 50,000	Margin over 85	14%

Non copper or mixed operators, and copper operators up to 50,000 t (Ley Nº 21.591 art. 4)

Worked example

A copper miner whose six year average sales, including related operators, exceed 80,000 tonnes has copper sales of US$1,000 million (CLP 986,580 million) and RIOMA of US$500 million (CLP 493,290 million). Its margin is 50, so the margin rate is 12 + 14/15 × 5 = 16.67 percent: US$83.3 million (CLP 82,215 million). Add 1 percent of copper sales, US$10 million (CLP 9,866 million). Royalty before the cap: US$93.3 million (CLP 92,081 million) (Ley Nº 21.591 art. 2 and 3).
Cap test: the cap is 46.5 percent of RIOMA, US$232.5 million (CLP 229,380 million). The royalty is reduced only if first category tax paid, plus final taxes at 35 percent of taxable income, plus the royalty exceed that amount; the outcome depends on the full income tax computation (Ley Nº 21.591 art. 8).
During its first royalty year the same miner has no prior year rate, so it pays monthly provisional payments of 0.3 percent of mining sales: US$250,000 on US$83.3 million of monthly sales (CLP 246.6 million), adjusted each quarter for the copper price (Ley Nº 21.591 art. 7).

Step by step

1. Map all related mining operators under Código Tributario art. 8 Nº 17 and add their sales of mining products for the last six years (Ley Nº 21.591 art. 5).
2. Convert sales to tonnes of fine copper equivalent using the Chilean Copper Commission's peso value for each year, and place the group in the art. 2 and 3 or the art. 4 scale.
3. Model RIOMA from the income tax return with the art. 6 adjustments, then the margin and the rate.
4. Run the art. 8 cap test with first category tax paid and final taxes at 35 percent of taxable income.
5. Set up monthly PPM on mining sales (0.3 percent where no rate exists) and adjust them each quarter after the Ministry of Finance copper price resolution (Ley Nº 21.591 art. 7).
6. File audited annual and quarterly financial statements with the CMF within the deadlines of its general rule (Ley Nº 21.591 art. 10).
7. Declare and pay the royalty in April with the annual income tax return (Ley Nº 21.591 art. 9; see start/tax-and-compliance-calendar).

Common traps

Counting only your own entity's sales: related operators' sales, averaged over six years, can push you into a higher scale (Ley Nº 21.591 art. 5).
Treating the 26 percent as a marginal rate: under art. 3 the rate set by the margin applies to all of RIOMA, so moving from a margin of 45 to 60 lifts the rate on the whole base from 12 to 26 percent (Ley Nº 21.591 art. 3).
Reading the art. 4 bands for operators over 50,000 tonnes as a flat rate: they are marginal rates applied to the parts of the margin, and above a margin of 85 the rate drops to 14 percent (Ley Nº 21.591 art. 4 Nº 3).
Forgetting the ad valorem component in loss years: it is only reduced by negative RIOMA, so a large copper miner with a small loss can still owe it (Ley Nº 21.591 art. 2).
Missing the CMF filings: operators that are not listed companies must still send audited statements, and failure is sanctioned under DL Nº 3.538 (Ley Nº 21.591 art. 10).

Sources

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