The time of tax declarations has come for many Latin American countries, and Chile is no different. Both companies and Chilean residents have been able to declare their yearly taxes since 1 April 2018 and the deadline for completing them is 30 April 2018. In a previous article we discussed the tax and accounting requirements in Santiago, Chile. This time we will provide you with an overview on when to pay taxes in Chile.
When Do Companies Need to Pay Taxes in Chile?
Companies in Chile have to pay taxes on a monthly basis. Every 12th of the month, the companies have to pay the taxes of the previous month. If this day happens to fall on a public holiday, a Saturday or 31 December, the day of payment will change to the first following working day. This is stated in article 64 of the law regarding taxes on sales and services. When the payment is made by internet, the deadline of payment is the 20th of the month. However, when the company has made a loss over the previous month, the company will not have to pay taxes for that month. In this case, the company has until the 28th of the month to make its declaration by internet.
In 2018, companies have to make their yearly tax declaration according to the following dates:
– If you need to pay taxes, you can present your declaration between April 7 and April 30.
– If you opt to pay online, the deadline is April 25.
– In case you already sent your declaration but want to replace it, the deadline is April 25.
However, the date of declaration also influences the date of your tax reimbursement, as can be seen in the table below:
| Date of declaration | Date of reimbursement by transfer | All reimbursements by cheque or payment at the cashier |
| April 01 to April 20 | May 11 | May 30 |
| April 21 to April 26 | May 18 | |
| April 27 to May 09 | May 25 |
When Do Expats Need to Pay Taxes in Chile?
Tax payers in Chile have to pay taxes on a monthly basis. Every 12th of the month, the companies have to pay the taxes of the previous month. If this day happens to fall on a public holiday, a Saturday or 31 December, the day of payment will change to the first following working day. This is stated in article 64 of the law regarding taxes on sales and services. When the payment is made by internet, the deadline of payment is the 20th of the month. In the case that the individual has not received any income over the month, he or she does not have to make a declaration.
In Chile, there is a difference between residents and non-residents regarding taxation. A tax-resident can be divided into 2 categories:
1. Resident: When a person has been in Chile for more than 6 consecutive months in one calendar years or 6 months consecutive or not within two consecutive fiscal years.
2. Domicile: When it can be assumed that a person wishes to stay in the country on a permanent basis.
A Chilean tax-resident is taxed based on their worldwide income. A tax-resident will pay an employment income tax on a monthly basis. This tax is calculated according to a progressive tax rate system ranging from 0% to 35%, as can be seen in the table below.
The following table shows the current tax rate in Chile for May 2018, this table changes on a monthly basis and income has to be taxed accordingly.
| Taxable Income Bracket | Taxe Rate | Tax Rebate | |
| From (CLP) | To (CLP) | % | (CLP) |
| 0 | $ 639.846,00 | 0 | |
| $ 639.846,01 | $ 1.421.880,00 | 4 | $ 25.593,84 |
| $ 1.421.880,01 | $ 2.369.800,00 | 8 | $ 82.469,04 |
| $ 2.369.800,01 | $ 3.317.720,00 | 13,5 | $ 212.808,04 |
| $ 3.317.720,01 | $ 4.265.640,00 | 23 | $ 527.991,44 |
| $ 4.265.640,01 | $ 5.687.520,00 | 30,4 | $ 843.648,80 |
| $ 5.687.520,01 | Onwards | 35 | $ 1.105.274,72 |
Income Tax Chile, May 2018.
For non-residents, the tax rate is 15% when their activities are related to technical or professional services. In other cases, a tax rate of 35% applies. Non-residents only have to pay tax on the income they earn in Chile. Non-residents also pay tax on a monthly basis.
In Chile, taxpayers have to make their yearly tax declaration according to the following dates:
– If you need to pay tax, you can present your declaration between April 7 and April 30.
– If you opt to pay online, the deadline is April 25.
– If you have already sent your declaration but want to replace it, the deadline is April 25.
However, the date of declaration also influences the date of your tax reimbursement, as can be seen in the table below:
| Date of declaration | Date of reimbursement by transfer | All reimbursements by cheque or payment at the cashier |
| April 01 to April 20 | May 11 | May 30 |
| April 21 to April 26 | May 18 | |
| April 27 to May 09 | May 25 |
As you can see the dates of declaration and monthly tax payments are the same for companies and individuals.
Want to Know More About Issues Related to Paying Tax in Chile?
Dealing with taxes and other accounting issues can sometimes be complicated when doing business abroad. At Biz Latin Hub we have a team of local and expat professionals that offer accounting and finance services that can help you to overcome these difficulties. Please contact us now to see how we can help you.
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