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Dividend tax in Chile 2026
Chile runs an imputation system: the company pays 25% (small and medium regime) or 27% (large companies), and shareholders count the dividend in their 0-40% scale with a credit for that tax.
The credit is the catch — small-company tax credits in full, large-company tax only at 65%, leaving a real extra burden on big-cap dividends.
At a glance
- top rate
- 40% scale, minus the imputation credit
- entry band
- Effective 0% where the credit covers the personal tax
- tax year basis
- Calendar year
- filing deadline
- April return
- residency basis
- Residents: worldwide dividends, with foreign-tax credits
- regime flag
- Stock dividends and returns of capital are not income
Rates
How dividends are taxed (2026)
| Rate | Base | Applies to |
|---|---|---|
| Scale (0-40%) less full credit | Grossed-up dividend | Distributions from small and medium companies taxed at 25% — full imputation |
| Scale (0-40%) less 65% credit | Grossed-up dividend | Distributions from large companies taxed at 27% — partial imputation |
| 0% | — | Stock dividends, capitalizations of profits and authorized returns of capital |
| 35% less credit | Gross dividend | Non-resident shareholders — withheld at source; treaty residents keep the full credit |
Residency
Residency trigger
Residents report dividends in the April return with the imputation credit attached; foreign dividends are also taxable, with credits for foreign tax under the broadened 2020 rules.
Non-resident treatment
Non-residents bear the 35% withholding minus the corporate-tax credit — treaty countries effectively cap the total burden at 35%, others carry the partial-credit surcharge.
Notes
- Interest is simply scale income for residents, with the 20 monthly-tax-unit (UTM) exemption for small savers whose only income is capital income.
- Transparent small companies pass profits straight to owners' personal tax with no entity-level charge.
- Foreign tax credits are capped at 35% of the foreign income and carry forward, never back.
FAQ
How are dividends taxed in Chile?
They join your 0-40% scale with a credit for the company's own tax — 100% of the 25% small-company tax, but only 65% of the 27% large-company tax.
What do foreign investors pay on Chilean dividends?
A 35% withholding reduced by the corporate-tax credit — for treaty residents the combined company-plus-shareholder burden lands at 35% of the profit.
Figures: tax year 2026, compiled from public sources. Not tax advice.