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Reform tracker: what is changing in Chilean business law and when

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

Chile is in the middle of a heavy reform cycle with dates an investor can plan around. Ley Nº 21.850, published 17 October 2026, cuts the corporate rate to 23 percent by 2029, ends tax on listed share gains and starts a tax stability regime on 1 January 2027, and opens an optional 10 percent tax on old retained earnings until June 2027. The new data protection law applies from 1 December 2026, the working week falls to 40 hours on 26 April 2028 and the employer pension contribution climbs from 3.5 percent toward 8.5 percent by 2033. Bills on a beneficial owner registry, environmental permitting and immigration are still in Congress, and this page tracks their official status.

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). UF amounts use UF 1 = CLP 41,221.08 (26 October 2026) and UTM amounts use UTM 1 = CLP 72,151 (October 2026), both as published by the Servicio de Impuestos Internos. Conversions are for orientation only.

Key facts

Corporate income tax rate, commercial year 2027	25.5 %Ley Nº 21.850, sixth transitory article, as of 2026-10-26 · pending
Corporate income tax rate, commercial year 2028	24 %Ley Nº 21.850, sixth transitory article, as of 2026-10-26 · pending
Corporate income tax rate from commercial year 2029	23 %Ley Nº 21.850, sixth transitory article, as of 2026-10-26 · pending
Tax on qualifying listed share gains (DL 824 art. 107) from 1 January 2027	0 %Ley Nº 21.850, art. 8 Nº 4, as of 2026-10-26 · pending
Optional single tax on FUR and STUT balances	10 %Ley Nº 21.850, eleventh transitory article, as of 2026-10-26 · in force
Data protection reform applies from	2026-12-01 dateLey Nº 21.719, first transitory article, as of 2026-10-26 · pending
Maximum data protection fine, very serious infringement	20000 UTMLey Nº 19.628 art. 35 as replaced by Ley Nº 21.719, as of 2026-10-26 · pending
Maximum ordinary working week since 26 April 2026	42 hoursLey Nº 21.561, transitory article Nº 1, as of 2026-10-26 · in force
Maximum ordinary working week from 26 April 2028	40 hoursLey Nº 21.561, transitory article Nº 1, as of 2026-10-26 · pending
Employer pension contribution since 1 August 2026	3.5 %Ley Nº 21.735, fourth transitory article, as of 2026-10-26 · in force
Employer pension contribution at the end of the base schedule (August 2033)	8.5 %Ley Nº 21.735, art. 1 and fourth transitory article, as of 2026-10-26 · pending

The rule

1. The first category (corporate) rate applies at 27 percent to income of commercial year 2026, 25.5 percent in 2027, 24 percent in 2028 and 23 percent from 2029. The 27 and 25.5 percent steps do not apply to art. 14 G taxpayers. The permanent rate in art. 20 of the income tax law is changed to 23 percent.
Example: Taxable profit of CLP 1,000,000,000: CLP 270,000,000 for 2026, CLP 255,000,000 for 2027, CLP 240,000,000 for 2028, CLP 230,000,000 from 2029. / About US$273,670 for 2026 falling to about US$233,129 from 2029.Ley Nº 21.850, Sixth transitory article; art. 8 Nº 3, 2026-10-17 official text · verified 2026-10-26 · changed: Enacted by Ley Nº 21.850, published in the Diario Oficial on 17 October 2026.

2. From 1 January 2027 (or the law's entry into force if later), holders of foreign investments of at least US$50 million can sign tax stability contracts of 10, 15 or 20 years depending on the investment size, at the cost of a first category rate 1.5 points above the frozen rate.
Cost to do it: 1.5 extra percentage points of first category tax for the contract term.Ley Nº 21.850, Art. 26, 2026-10-17 official text · verified 2026-10-26 · changed: New regime created by Ley Nº 21.850; applies from 1 January 2027.

3. Gains on listed shares and other securities covered by art. 107 of the income tax law stop being taxed at the 10 percent single tax and become non income (no constituirá renta). The change applies from 1 January 2027.
Example: A gain of CLP 100,000,000 on qualifying listed shares sold in 2026 bears CLP 10,000,000 of single tax; the same gain in 2027 bears none. / About US$10,136 of tax on a US$101,360 gain in 2026; US$0 from 2027.Ley Nº 21.850, Art. 8 Nº 4; ninth transitory article Nº 3, 2026-10-17 official text · verified 2026-10-26 · changed: Art. 107 gains move from a 10 percent single tax to non income from 1 January 2027 (Ley Nº 21.850).

4. The obligation to restitute 35 percent of corporate tax credits on distributions from art. 14 A companies is repealed from 1 January 2027. In the transition, credits generated from 1 January 2027 to 31 December 2028 still carry a restitution of 30 percent (credit generated in tax year 2028) and 20 percent (tax year 2029). Shareholders resident in countries with a tax treaty in force that makes first category tax creditable against additional tax remain outside the restitution rule.
Example: For a dividend carrying a CLP 27,000,000 first category credit, a non treaty shareholder restitutes CLP 9,450,000 today (35 percent), CLP 8,100,000 on credits of tax year 2028 (30 percent) and CLP 5,400,000 on credits of tax year 2029 (20 percent). / About US$9,579, US$8,210 and US$5,473 respectively.Ley Nº 21.850; DL Nº 824, Art. 9; fifth transitory article; DL 824 art. 63, 2026-10-17 official text · verified 2026-10-26 · changed: Ley Nº 21.850 removes the restitution from 1 January 2027 with a two year phase down.

5. Companies with a positive balance in the Fondo de Utilidades Reinvertidas (FUR) or the Saldo Total de Utilidades Tributables (STUT) at the end of commercial year 2025 or 2026 may elect a 10 percent single tax, replacing final taxes, on all or part of the balance, without the associated credits. The election must be made within eight months of the law's publication, by filing and paying simultaneously on the SII form. Amounts taxed this way can be distributed or remitted without the ordering rules and without the art. 74 Nº 4 withholding.
Cost to do it: 10 percent of the balance elected; the tax and related costs are not deductible.
Example: Electing CLP 500,000,000 of FUR balance costs CLP 50,000,000. / About US$50,680.Ley Nº 21.850, Eleventh transitory article, 2026-10-17 official text · verified 2026-10-26 · changed: Optional window opened by Ley Nº 21.850; eight months from publication on 17 October 2026.

6. The amendments to the personal data protection law (Ley Nº 19.628) apply from the first day of the 24th month after Ley Nº 21.719 was published on 13 December 2024, that is 1 December 2026. Data controllers then face fines of up to 5,000 UTM for minor, 10,000 UTM for serious and 20,000 UTM for very serious infringements, tripled for repeat offences; repeat serious or very serious infringements by companies that are not small or medium enterprises can reach 2 or 4 percent of annual revenue if higher.
Cost to do it: Maximum fine 20,000 UTM, CLP 1,443,020,000 at the October 2026 UTM (about US$1.46 million), or up to 4 percent of annual revenue for repeat very serious infringements by large companies.
Example: Serious infringement cap: 10,000 UTM, CLP 721,510,000. / About US$731,324.Ley Nº 21.719; Ley Nº 19.628 as amended, Ley 21.719 first transitory article; Ley 19.628 art. 35, 2024-12-13 official text · verified 2026-10-26 · changed: In force from 1 December 2026.

7. The maximum ordinary working week falls in steps counted from publication of Ley Nº 21.561 on 26 April 2023: 44 hours from the first year, 42 hours from the third year (26 April 2026) and 40 hours from the fifth year (26 April 2028).Ley Nº 21.561, Transitory article Nº 1, 2023-04-26 official text · verified 2026-10-26 · changed: 42 hour week in force since 26 April 2026; 40 hours from 26 April 2028.

8. Employers pay a new pension contribution that rises from 1 percent (from the fifth month after publication on 26 March 2025, August 2025) to 3.5 percent (August 2026), 4.25 percent (August 2027), 5 percent (August 2028), 5.7 percent (August 2029), 6.4 percent (August 2030), 7.1 percent (August 2031), 7.8 percent (August 2032) and 8.5 percent (August 2033). If the external review under Ley Nº 21.713 shows lower than expected tax revenue that is not offset, a slower schedule applies from the 2029 step, reaching 8.5 percent in August 2035.
Example: On a taxable monthly wage of CLP 1,500,000, the employer contribution is CLP 52,500 at 3.5 percent and CLP 63,750 at 4.25 percent. / About US$53.21 rising to US$64.62 a month.Ley Nº 21.735 (pension reform), Art. 1; fourth transitory article, 2025-03-26 official text · verified 2026-10-26 · changed: 3.5 percent since 1 August 2026; next step to 4.25 percent on 1 August 2027.

9. Bill creating a National Registry of Beneficial Owners. Filed by the Executive on 18 December 2023; in first constitutional stage in the Senate, at the first report of the Finance Committee. Not law.Boletín Nº 16475-05 (bill), Senate legislative status record, 2023-12-18 official text · verified 2026-10-26

10. Bill to strengthen environmental institutions and make them more efficient. Filed on 10 January 2024; in second constitutional stage in the Chamber of Deputies, at the first report of the Environment and Natural Resources Committee. The Executive withdrew its simple urgency on 9 September 2026. Not law.Boletín Nº 16552-12 (bill), Senate legislative status record, 2024-01-10 official text · verified 2026-10-26

11. Bill amending Ley Nº 21.325 to improve the administrative expulsion procedure. Both chambers approved the mixed committee report (Chamber of Deputies on 19 October 2026, Senate on 20 October 2026) and the official status record now shows the bill being sent to the Executive. It becomes law only when promulgated and published in the Diario Oficial.Boletín Nº 16836-06 (bill), Senate legislative status record, 2024-05-13 official text · verified 2026-10-26

12. Bill amending Ley Nº 21.325 on migration and other laws. Filed on 10 July 2023; in second constitutional stage in the Senate, at the second report of the Government, Decentralization and Regionalization Committee, with the Executive renewing urgency, most recently on 3 March 2026. Not law.Boletín Nº 16072-06 (bill), Senate legislative status record, 2023-07-10 official text · verified 2026-10-26

Date	Change	Norm	Status
1 November 2026	General entry into force of Ley Nº 21.850 provisions without a special date	Ley Nº 21.850, ninth transitory article	Enacted
1 December 2026	New data protection regime and fines	Ley Nº 21.719	Enacted, pending start
1 January 2027	Corporate rate 25.5 percent; tax stability contracts; listed share gains non income; restitution repealed with phase down	Ley Nº 21.850	Enacted, pending start
17 June 2027	End of the eight month window for the optional 10 percent tax on FUR and STUT (eight months from 17 October 2026)	Ley Nº 21.850, eleventh transitory article	Open window
1 August 2027	Employer pension contribution 4.25 percent	Ley Nº 21.735	Enacted, pending start
1 January 2028	Corporate rate 24 percent	Ley Nº 21.850	Enacted, pending start
26 April 2028	40 hour week	Ley Nº 21.561	Enacted, pending start
1 January 2029	Corporate rate 23 percent	Ley Nº 21.850	Enacted, pending start
1 August 2033	Employer pension contribution 8.5 percent (base schedule)	Ley Nº 21.735	Enacted, pending start

Enacted changes with future dates. Status as verified on 26 October 2026 against the official texts.

Bulletin	Subject	Stage	Latest recorded step
16475-05	National Registry of Beneficial Owners	First stage, Senate, Finance Committee first report	Urgency renewed 3 September 2025
16552-12	Environmental institutions and permitting efficiency	Second stage, Chamber of Deputies, Environment Committee	Urgency withdrawn 9 September 2026
16836-06	Administrative expulsion procedure (Ley Nº 21.325)	Final stage, sent to the Executive	Mixed committee report approved by the Senate 20 October 2026
16072-06	Migration law amendments (Ley Nº 21.325)	Second stage, Senate, Government Committee second report	Urgency renewed 3 March 2026

Bills in Congress, from the Senate legislative status record on 26 October 2026.

Worked example

A foreign parent owns a Chilean subsidiary with CLP 1,000,000,000 of yearly taxable profit (about US$1.01 million). Corporate tax falls from CLP 270,000,000 for 2026 to CLP 230,000,000 from 2029, a saving of CLP 40,000,000 a year (about US$40,544) once the schedule is complete (Ley Nº 21.850, sixth transitory article).
If the parent is resident in a country without a treaty with Chile, the 35 percent restitution on corporate tax credits on dividends stops for credits from 2027 onward, after a phase down of 30 and 20 percent (Ley Nº 21.850, art. 9 and fifth transitory article). Parents resident in a country whose treaty with Chile is in force and makes first category tax creditable against additional tax were already outside the restitution rule (DL Nº 824 art. 63). Argentina has a treaty with Chile; an Argentine parent should check its terms and the Argentine side of the rules in the Argentine guide.
The same subsidiary pays 3.5 percent employer pension contribution today and 4.25 percent from 1 August 2027; on a CLP 1,500,000 wage that is CLP 11,250 more a month per employee (about US$11.40).
Its customer data processes must comply with the new data protection regime from 1 December 2026, with fines up to 20,000 UTM (about US$1.46 million at October 2026 values).

Step by step

1. Update tax models for the 2027 to 2029 rate steps and the end of restitution, and remeasure deferred tax balances.
2. If the group has FUR or STUT balances, model the optional 10 percent tax before the eight month window closes in June 2027.
3. For investments of US$50 million or more, compare the stability contract premium of 1.5 points against the scheduled rate cut.
4. Finish data protection readiness before 1 December 2026.
5. Budget payroll for each August pension step and for the 40 hour week in April 2028.
6. Check the Senate status record for the four bills before relying on current rules for beneficial ownership, environmental permits or immigration.

Common traps

Treating a bill as law. The beneficial owner registry, environmental and migration bills are still in Congress; even a bill approved by both chambers is not law until promulgated and published in the Diario Oficial.
Assuming the full 8.5 percent pension rate arrives in 2033 no matter what. Ley Nº 21.735 provides a slower schedule ending in 2035 if the Ley Nº 21.713 revenue review falls short.
Missing the FUR and STUT window. The option must be exercised within eight months of publication, by filing and paying at the same time (Ley Nº 21.850, eleventh transitory article).
Assuming all share gains are exempt from 2027. Only gains within art. 107 of the income tax law change; other gains follow the general rules (see taxes/capital-gains).

Sources

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