Countries › Chile › Guide › 6. Taxes › Withholding tax on payments abroad from Chile: dividends, branch profits, interest, royalties, services and the treaty rates

Withholding tax on payments abroad from Chile: dividends, branch profits, interest, royalties, services and the treaty rates

Argentina. For full detail on Argentina, go to The Argentine Thread.

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

Chile taxes payments to non residents through a 35 percent additional tax, withheld by the Chilean payer and paid by the 12th of the following month. Dividends and branch profits carry a credit for the corporate tax already paid, so the total burden for owners in treaty countries is 35 percent; other owners also restitute part of that credit until 2028. Interest is withheld at 35 percent or 4 percent for foreign bank loans, royalties at 30 or 15 percent (standard software exempt), technical services at 15 percent and other services abroad at 35 percent, and treaty residents can claim lower rates with a residence certificate.

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

Additional tax on dividends and remitted profits to non residents (before first category tax credit)	35 %DL Nº 824, art. 58 and art. 63, as of 2026-10-26 · in force
Total tax on distributed profit for a treaty country shareholder	35 %DL Nº 824, art. 58 and art. 63, as of 2026-10-26 · in force
Restitution of first category credit for non treaty owners, credits from commercial year 2027	30 %Ley Nº 21.850, fifth transitory article, as of 2026-10-26 · pending
Restitution of first category credit for non treaty owners, credits from commercial year 2028	20 %Ley Nº 21.850, fifth transitory article, as of 2026-10-26 · pending
Withholding on interest paid abroad, general rate	35 %DL Nº 824, art. 59 Nº 1, as of 2026-10-26 · in force
Withholding on interest on loans from foreign banks and financial institutions	4 %DL Nº 824, art. 59 Nº 1 b), as of 2026-10-26 · in force
Withholding on royalties for trademarks and similar	30 %DL Nº 824, art. 59, as of 2026-10-26 · in force
Withholding on patents, industrial designs and non standard software	15 %DL Nº 824, art. 59, as of 2026-10-26 · in force
Withholding on engineering, technical and professional advice	15 %DL Nº 824, art. 59 Nº 2, as of 2026-10-26 · in force
Withholding on other services rendered abroad	35 %DL Nº 824, art. 59 Nº 2, as of 2026-10-26 · in force
Additional tax on premiums paid to insurers not established in Chile	22 %DL Nº 824, art. 59 Nº 3, as of 2026-10-26 · in force
Withholding payment deadline (day of following month)	12 dayDL Nº 824, art. 79, as of 2026-10-26 · in force

The rule

1. Dividends of Chilean companies and profits withdrawn or remitted by a Chilean branch or permanent establishment to non residents bear additional tax at 35 percent. The base is grossed up by the first category tax credit, which is then deducted, so a fully taxed profit carries 35 percent in total. Returns of capital brought into Chile are exempt up to the amount actually brought in.
Cost to do it: 35 percent total on fully taxed profit for treaty country owners.
Example: On CLP 98,658,000 of 2026 pre tax profit: CLP 26,637,660 corporate tax, CLP 7,892,640 additional tax after credit, CLP 64,127,700 net. / On US$100,000: US$27,000, US$8,000 and US$65,000.Decreto Ley Nº 824, Art. 58 Nº 1 and Nº 2; art. 63, 1974-12-31 official text · verified 2026-10-26

2. Owners not resident in a country with a treaty in force that makes first category tax creditable against additional tax must restitute part of the credit. Under art. 63 as in force until 31 December 2026 the restitution is 35 percent of the credit. Ley Nº 21.850 repeals the rule from 1 January 2027 but keeps a 30 percent restitution for credits generated in tax year 2028 (commercial year 2027) and 20 percent for tax year 2029 (commercial year 2028). Credits accumulated up to 31 December 2026 are allocated first, in the order then in force.
Cost to do it: For 2026 profit, an extra 9.45 points (44.45 percent total) for non treaty owners.
Example: On CLP 98,658,000 of 2026 profit, a non treaty owner restitutes CLP 9,323,181 more and nets CLP 54,804,519. / US$9,450 more, US$55,550 net.Decreto Ley Nº 824; Ley Nº 21.850, DL 824 art. 63; Ley Nº 21.850 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 from 1 January 2027 with a 30 percent and 20 percent phase out for credits from commercial years 2027 and 2028.

3. Interest paid to non residents is taxed at 35 percent. A 4 percent rate applies to interest on foreign currency deposits in authorised Chilean institutions; loans from foreign or international banks and financial institutions, and from qualifying foreign insurers and pension funds; deferred payment balances on imports; foreign currency bonds of Chilean companies, the State and the Central Bank; and certain public debt instruments. For loans the lender must declare that there is no back to back structure passing the interest to someone not entitled to 4 percent.
Example: Interest of CLP 98,658,000 to a foreign bank: CLP 3,946,320 withheld; to a foreign parent: CLP 34,530,300. / On US$100,000: US$4,000 against US$35,000.Decreto Ley Nº 824, Art. 59 fourth paragraph Nº 1 letters a) to h), 1974-12-31 official text · verified 2026-10-26

4. Royalties for trademarks, patents, formulas and similar are taxed at 30 percent of the gross amount. The rate is 15 percent for patents, utility models, industrial designs, integrated circuit layouts, new plant varieties and software, and for copyright and publishing rights; payments for standard software (rights limited to using it) are exempt. The rate returns to 30 percent if the recipient is in a preferential tax regime under art. 41 H.
Example: On a CLP 49,329,000 licence fee: CLP 14,798,700 for a trademark, CLP 7,399,350 for a patent or custom software, nil for standard software. / On US$50,000: US$15,000, US$7,500 or nil.Decreto Ley Nº 824, Art. 59 first and third paragraphs, 1974-12-31 official text · verified 2026-10-26

5. Pay for services rendered abroad is taxed at 35 percent, with exemptions for freight, shipping and storage charges, testing, insurance other than that taxed separately, commissions, international telecommunications, smelting and refining of Chilean products, and certain export related services. Engineering or technical work and professional or technical advice delivered through advice, reports or plans, whether provided in Chile or abroad, is taxed at 15 percent, or 20 percent for recipients in preferential tax regimes.
Example: On CLP 49,329,000 of consulting fees: CLP 7,399,350 if technical advice, CLP 17,265,150 if a general service taxed at 35 percent. / On US$50,000: US$7,500 or US$17,500.Decreto Ley Nº 824, Art. 59 fourth paragraph Nº 2, 1974-12-31 official text · verified 2026-10-26

6. Insurance premiums paid to insurers not established in Chile on goods located in Chile or on persons resident in Chile bear 22 percent of the premium, and reinsurance premiums 2 percent. Any other Chilean source income of non residents not covered elsewhere bears 35 percent, or 20 percent for scientific, cultural or sporting work by individuals, withheld before they leave Chile.Decreto Ley Nº 824, Art. 59 Nº 3 and art. 60, 1974-12-31 official text · verified 2026-10-26

7. The Chilean payer withholds the additional tax when paying, crediting or remitting and pays it by the 12th of the following month. A payer may withhold at the treaty rate, or not withhold where the treaty gives the taxing right only to the other state, if the recipient provides a residence certificate from its tax authority and a declaration, in the form set by the SII, that it has no permanent establishment in Chile to which the income is attributable and meets the treaty requirements. If the SII later finds the treaty did not apply, the payer is liable for the shortfall, with a right to recover it from the recipient.
Cost to do it: No fee; the payer bears the risk of an under withholding.Decreto Ley Nº 824, Art. 74 Nº 4 and art. 79, 1974-12-31 official text · verified 2026-10-26

8. Under the Chile United States treaty, in force since 19 December 2023 and applied in Chile from 1 January 2024, Chile may tax interest paid to US residents at no more than 4 percent for banks, insurers and similar lenders and 10 percent in other cases (15 percent for the first five years the interest provisions apply), and royalties at 2 percent for the use of equipment and 10 percent for other royalties. For dividends, the protocol lets Chile keep applying its additional tax as long as first category tax remains fully creditable against it.
Example: Interest of CLP 98,658,000 to a US related lender: CLP 14,798,700 at 15 percent in the first five years, then CLP 9,865,800 at 10 percent, instead of CLP 34,530,300. / US$15,000, then US$10,000, instead of US$35,000.Decreto Nº 200 of 2023, Ministerio de Relaciones Exteriores, promulgating the Chile United States double taxation convention and protocol, Convention art. 11 Nº 2 and Nº 3, art. 12 Nº 2; Protocol Nº 12, 2024-01-27 official text · verified 2026-10-26

Payment	Domestic rate	Tax on US$100,000	United States treaty cap	Rule
Dividend from fully taxed 2026 profit	35 percent with first category credit	US$8,000 on US$73,000 paid out of US$100,000 profit	Chilean additional tax still applies while the credit is full (Protocol Nº 12)	Art. 58 Nº 2, art. 63
Interest, foreign bank	4 percent	US$4,000	4 percent	Art. 59 Nº 1 b)
Interest, related company	35 percent	US$35,000	10 percent (15 percent first five years)	Art. 59 Nº 1
Royalty, trademark	30 percent	US$30,000	10 percent	Art. 59
Royalty, patent or custom software	15 percent	US$15,000	10 percent	Art. 59
Standard software licence	Exempt	Nil	Not needed	Art. 59
Technical or professional advice	15 percent (20 percent preferential regimes)	US$15,000	Depends on the business profits and services articles	Art. 59 Nº 2
Other services abroad	35 percent	US$35,000	Depends on the business profits article	Art. 59 Nº 2

Chilean withholding on payments to non residents (DL 824 art. 58 to 60) and the caps under the Chile United States treaty (Decreto Nº 200 of 2023). Amounts on a US$100,000 (CLP 98,658,000) payment.

Worked example

A Chilean SpA owned by a German parent pays during 2026 a dividend from fully taxed 2026 profit, US$200,000 of interest on a parent loan and US$80,000 of trademark royalties. Germany is not on the SII list of treaties in force, so no treaty rate applies.
Interest: 35 percent of US$200,000 (CLP 197,316,000) is US$70,000 (CLP 69,060,600). Royalties: 30 percent of US$80,000 (CLP 78,926,400) is US$24,000 (CLP 23,677,920). Both are paid to the Treasury by the 12th of the month after payment (DL 824 art. 79).
Dividend: for each US$100,000 of 2026 pre tax profit, US$27,000 of first category tax was paid, the US$73,000 dividend bears US$8,000 of additional tax after credit, and because the parent is not a treaty resident it also restitutes 35 percent of the credit, US$9,450, leaving US$55,550. The same profit paid to a parent in Spain, which has a treaty in force, would leave US$65,000.
If the parent were in Argentina, Chile's treaty with Argentina, applied in Chile from 1 January 2017, would govern the rates; check its dividend, interest and royalty articles and the Argentine treatment of the income in the Argentine guide.

Step by step

Classify each payment abroad (dividend, interest, royalty, technical service, other service) before paying it; the rate follows the classification.
Collect the documents for any reduced rate: the foreign bank's no back to back declaration for 4 percent interest, the recipient's residence certificate and the SII declaration for treaty rates.
Withhold on payment or credit in account, whichever comes first, and pay by the 12th of the following month on the monthly return (art. 79).
Track the first category credit attached to each distribution in the SAC register, including the 30 and 20 percent restitution periods for 2027 and 2028 credits.
File the annual sworn statements the SII requires on payments abroad and on the treaty status of recipients.

Common traps

A residence certificate is presumed valid only for the calendar year it was issued; renew it every year.
The payer, not the foreign recipient, is liable for under withholding if a treaty claim fails.
General services abroad are taxed at 35 percent, not 15 percent; only engineering, technical and professional advice qualifies for 15 percent.
Interest accrued but not paid can still count for thin capitalization and transfer pricing; see those pages.
Treaty dividend limits generally do not bite in Chile because the additional tax applies while the corporate tax credit is full.

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

← Corporate income tax in Chile: the first category tax, its regimes, the rate cut to 23 percent, deductions and monthly prepaymentsEmploying people in Chile: contracts, working hours, minimum wage, social security, dismissal and severance, unions and outsourcing →