Countries › Chile › Guide › 6. Taxes › Tax incentives in Chile: the 35 percent R&D credit, the new tax stability contracts, the digital knowledge services payroll credit, capital goods VAT relief and the Pro Pyme rate

Tax incentives in Chile: the 35 percent R&D credit, the new tax stability contracts, the digital knowledge services payroll credit, capital goods VAT relief and the Pro Pyme rate

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

Chile relies on low general rates more than targeted holidays, but offers a credit of 35 percent of certified R&D spending (capped at 15,000 UTM a year, applications until 31 December 2035), VAT free import of capital goods for projects of USD 5 million or more, and a 12.5 percent Pro Pyme corporate rate for qualifying SMEs. Ley Nº 21.850 of October 2026 adds tax stability contracts for investments of USD 50 million or more (10 to 20 years, for 1.5 extra points of corporate tax), a 15 percent payroll credit for exporters of digital knowledge services and a credit for catastrophic illness costs of staff. It also trims the training credit ceiling from 1 to 0.7 percent of payroll.

USD figures use the Central Bank exchange rate of CLP 986.58 per US dollar published in the Diario Oficial of 23 October 2026 (Ley Nº 18.840 art. 44). Tax units use the SII values of UTM CLP 72,151 and UTA CLP 865,812 for October 2026 and UF CLP 41,221.08 for 26 October 2026. Conversions are for orientation only.

Key facts

R&D tax credit on certified spending	35 %Ley Nº 20.241, art. 5 and art. 18, as of 2026-10-26 · in force
R&D tax credit annual cap	15000 UTMLey Nº 20.241, art. 5 and art. 18, as of 2026-10-26 · in force
Deadline to apply for R&D certification	2035-12-31 dateLey Nº 20.241, first transitory article, as amended by Ley Nº 21.755, as of 2026-10-26 · in force
Minimum investment for a tax stability contract	50000000 USDLey Nº 21.850, art. 26 Nº 1, as of 2026-10-26 · pending
Maximum tax stability term (investment of USD 350 million or more)	20 yearsLey Nº 21.850, art. 26 Nº 2 letter A, as of 2026-10-26 · pending
First category rate premium for tax stability	1.5 percentage pointsLey Nº 21.850, art. 26 Nº 2 letter C, as of 2026-10-26 · pending
Payroll credit for exporters of knowledge based services	15 %DL Nº 824, art. 33 ter, as of 2026-10-26 · in force
Annual cap of the knowledge services payroll credit per worker	75 UTMDL Nº 824, art. 33 ter, as of 2026-10-26 · in force
Minimum project size for VAT free capital goods imports	5000000 USDDL Nº 825, art. 12 letter B Nº 10, as of 2026-10-26 · in force
Pro Pyme (SME) rate, commercial years 2025 to 2027, conditional	12.5 %Ley Nº 21.755, art. 25, as of 2026-10-26 · in force

The rule

1. First category taxpayers keeping full accounts may credit against first category tax 35 percent of payments under R&D contracts certified by CORFO with registered research centres, or of current expenses and the annual depreciation of fixed assets of their own certified R&D projects. The credit is capped at 15,000 UTM per year at the year end UTM value; unused credit carries forward adjusted but is not refunded. While certification is pending the taxpayer may deduct 65 percent of the spending as expense. Certification applications can be filed until 31 December 2035.
Cost to do it: Credit of 35 percent of certified spending, up to 15,000 UTM (CLP 1,082,265,000 at the October 2026 UTM).
Example: Certified R&D spending of CLP 493,290,000 gives a credit of CLP 172,651,500. / US$500,000 of spending gives a US$175,000 credit; the annual cap is about US$1,096,986.56.Ley Nº 20.241, as amended by Ley Nº 21.755, Art. 5, art. 18 and first transitory article, 2025-07-11 official text · verified 2026-10-26 · changed: Ley Nº 21.755 (Diario Oficial 11 July 2025) extended the deadline to apply for certification to 31 December 2035.

2. From 1 January 2027, foreign investors (as defined in Ley Nº 20.848) and local investors that sign an investment contract with the Ministry of Finance, after a report from the Foreign Investment Promotion Agency, for mining, industrial, forestry, energy, infrastructure, telecommunications, research and development, medical or scientific projects of at least USD 50 million may lock in the total effective income tax burden in force at signing for 10 years (USD 50 to 100 million), 15 years (USD 100 to 350 million) or 20 years (USD 350 million or more), counted from start up. Investment counts capital and debt actually applied to the project, with related debt capped at three times tax equity. Capital must be brought in within ten years for mining and five years otherwise. The cost is a first category rate 1.5 points higher than the contract rate on the covered income, and the project must keep separate accounts.
Cost to do it: An extra 1.5 points of first category tax on income from the covered investment.
Example: A project contracted when the general rate is 23 percent pays 24.5 percent on its covered income; on CLP 9,865,800,000 of profit the stability premium is CLP 147,987,000. / On US$10,000,000 of profit, the premium is US$150,000.Ley Nº 21.850, Art. 26 Nº 1, Nº 2 letters A to C, Nº 4 and Nº 5, 2026-10-17 official text · verified 2026-10-26 · changed: New tax stability statute created by Ley Nº 21.850 (Diario Oficial 17 October 2026), effective from 1 January 2027 or the law's entry into force if later.

3. Stability contracts may also freeze SII resolutions and circulars on depreciation, loss carryforwards and organisation and start up costs, permission to keep accounts in foreign currency, export freedom rules for exporting projects, and, for mining projects, the mining royalty under Ley Nº 21.591, protection from new mining specific taxes, and mining licence fees. Stability is lost on a final conviction for tax crimes or on a finding of abuse or simulation under the general anti avoidance rule; disputes go to mediation and then arbitration, without covering the SII's audit and assessment powers.
Cost to do it: Arbitration costs if a dispute arises.Ley Nº 21.850, Art. 26 Nº 2 letter B, Nº 3 and Nº 6, 2026-10-17 official text · verified 2026-10-26

4. First category taxpayers with full accounts that export knowledge based services (qualified as exports by Customs, provided to non residents and performed wholly or partly in Chile for use abroad, deliverable remotely) may credit 15 percent of the pay of Chile resident workers linked to those services, in proportion to export income over total income, plus 5 points for companies whose head office or branches are outside the Santiago Metropolitan Region or in its rural communes. The credit is capped at 75 UTM per worker per year, carries forward without refund, and is incompatible with other payroll based benefits except the Ley Nº 19.853 bonus. The Ministry of Finance issues an annual catalogue of eligible services.
Cost to do it: Up to 75 UTM per worker a year, CLP 5,411,325 at the October 2026 UTM.
Example: A worker paid CLP 30,000,000 a year, 80 percent linked to export income, generates a credit of CLP 3,600,000. / About US$3,648.97 per worker.Decreto Ley Nº 824, as amended by Ley Nº 21.850, Art. 33 ter; Ley Nº 21.850 art. 7 and ninth transitory article, 2026-10-17 official text · verified 2026-10-26 · changed: New credit created by Ley Nº 21.850 (Diario Oficial 17 October 2026), in force from 1 November 2026 under the law's general entry into force rule.

5. From 1 January 2027, companies in the general regime or the Pro Pyme regime that pay directly to accredited providers for catastrophic illness treatment of employees with at least two years of service, or their spouse, civil partner or children aged 25 or under, may credit up to 150 UTM per worker over the employment relationship against first category tax; excess spending is deductible. The illnesses are defined by supreme decree, and spending for owners of 10 percent or more and their families is excluded.
Cost to do it: Up to 150 UTM per worker, CLP 10,822,650 at the October 2026 UTM.Decreto Ley Nº 824, as amended by Ley Nº 21.850, Art. 33 quáter; Ley Nº 21.850 ninth transitory article Nº 2, 2026-10-17 official text · verified 2026-10-26 · changed: New credit created by Ley Nº 21.850, effective 1 January 2027.

6. Imports of capital goods for mining, industrial, forestry, energy, infrastructure, telecommunications, research or technological, medical or scientific projects with investment of at least USD 5 million are exempt from VAT, by residents, foreign investors or companies receiving foreign investment.
Cost to do it: Saves 19 percent VAT on eligible capital goods.Decreto Ley Nº 825, Art. 12 letter B Nº 10, 1974-12-31 official text · verified 2026-10-26

7. Qualifying SMEs in the Pro Pyme regime pay first category tax at 12.5 percent for 2025 to 2027 and 15 percent for 2028, if the employer pension contribution is at the scheduled level at each year end.
Cost to do it: Saving of 14.5 points against the 27 percent general rate in 2026.Ley Nº 21.755, Art. 25, 2025-07-11 official text · verified 2026-10-26

8. Training costs approved under the training statute are credited against first category tax up to a ceiling that Ley Nº 21.850 reduces from 1 percent to 0.7 percent of annual taxable payroll, with company co financing tiers by trainee pay.
Cost to do it: Credit worth up to 0.7 percent of payroll a year.Ley Nº 19.518, as amended by Ley Nº 21.850, Art. 36 and art. 37; Ley Nº 21.850 art. 29, 2026-10-17 official text · verified 2026-10-26 · changed: Ceiling cut from 1 to 0.7 percent of taxable payroll by Ley Nº 21.850, in force from 1 November 2026.

Investment (capital plus debt applied)	Stability term	Rate premium	Example premium on US$10 million of covered profit
USD 50 million to under 100 million	10 years	1.5 points	US$150,000
USD 100 million to under 350 million	15 years	1.5 points	US$150,000
USD 350 million or more	20 years	1.5 points	US$150,000

Tax stability terms under Ley Nº 21.850 art. 26 Nº 2 letter A, counted from project start up.

Worked example

A mining services company invests US$120,000,000 in a new plant under a stability contract signed in 2029, when the general first category rate is 23 percent. For 15 years from start up it pays 24.5 percent on the covered income, regardless of later rate or base changes, and can keep the loss and depreciation rules in force at signing. It must keep related debt within three times tax equity at every year end, or it loses stability.
A Valparaíso software firm exports development services to clients abroad, with 90 percent of its income from exports. On an engineer paid CLP 24,000,000 a year, the art. 33 ter credit is 20 percent (15 plus 5 for being outside the Metropolitan Region) of 90 percent of pay, CLP 4,320,000, within the 75 UTM cap of CLP 5,411,325.
Argentine investors are eligible for the stability regime as foreign investors under Ley Nº 20.848 on the same terms as others; their home country treatment is covered in the Argentine guide.

Step by step

Map planned investment and spending against each incentive: R&D, capital goods VAT, Pro Pyme, payroll credits and stability.
For R&D, apply to CORFO for certification before or during spending; deduct 65 percent until certified.
For capital goods VAT relief, apply before importing for projects of USD 5 million or more.
For stability, prepare the application to the Foreign Investment Promotion Agency with evidence of lawful origin of funds, financial capacity, employment and local linkage plans, once the regime opens on 1 January 2027.
For digital services exporters, check the Ministry of Finance catalogue and set up the SII worker register for regional workers.

Common traps

The stability premium of 1.5 points applies for the whole term even if general rates fall further.
Breaching the 3 to 1 related debt limit at any year end ends the stability contract.
The art. 33 ter credit is lost for all workers in the year if the company did not take the required care to verify where regional workers actually work.
R&D credits are not refundable; a loss making company only carries them forward.
Stability does not shield the investor from the general anti avoidance rule or SII audits.

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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