Fischer y Cía. has created this website in order to support understanding and debate on these changes to the Chilean tax system. This is general information. Therefore, it is not necessarily complete or exact. It is also continually updated and corrected. We invite you to collaborate with this initiative by sending comments or documentation to


Capital Gains

September 20, 2022

Capital gains from disposals or redemptions of stock market instruments described in Article 107 of the Income Tax Law (“LIR” in Spanish) were classified as non-taxable income and were not subject to tax. This tax exemption was granted to deepen the capital market.

With the publication of Law 21,420 on February 4, 2022, which purpose was to finance the Universal General Pension Scheme, this article was amended by making capital gains on the disposal of such instruments subject to a 10% tax rate. This amendment is effective as of September 1 of this year.

However, the current tax reform bill also changes this article:

1. Shares of corporations incorporated and listed in Chile

Capital gains from the disposal or redemption of shares listed on the stock market will now be taxed at a 22% tax rate. This subjects these gains to the same tax treatment as dividends distributed to those shareholders.

This is a unique tax. Therefore, these gains will not be taxed again by another income tax. However, taxpayers subject to IGC may choose to subject it to such tax and use the capital gain tax as a tax credit against it. It would be attractive for those taxpayers subject to IGC at a lower rate than 22%.

The tax reform keeps the requirements for such shares in order to obtain the benefits from Article 107, which are mainly that their initial acquisition and subsequent disposal should be through a stock exchange in Chile.

2. Investment and mutual fund units

Capital gains on the disposal or redemption of: (a) units of investment funds that are listed on the stock exchange; (b) units of mutual funds whose investments consist in securities listed on the stock exchange, and; (c) units of mutual funds that are listed on the stock exchange, will also be subject to the 22% tax rate described above.

3.  Capital Gain computation

The tax reform bill amends the capital gain computation method under Law 21,420.

It eliminates the choice given to taxpayers with domicile and residence in Chile to choose the acquisition value as either (a) the official closing price of that financial instrument as of December 31 of the year of acquisition, or (b) the acquisition value according to the general rules in the LIR.

Instead, it establishes a single rule that determines that the capital gain is the positive difference between the sale price and the acquisition value adjusted by inflation.

4. Effective date

If the tax reform bill is approved under these terms, these amendments will apply to events that occurred or income received or accrued in the business year 2024.