As of January 1, 2025, the Unintegrated system becomes the general regime. Thus, company owners’ taxation is separated from companies’ taxation. Therefore, companies will pay Corporate Income Tax (“IDPC” in Spanish), while earnings distributed to their owners or shareholders who pay final taxes (resident individuals or aliens) will be taxed with a new tax called “Capital Income Tax” (“IRC” in Spanish), according to the following rules:

• Corporate Income Tax decreases from 27% to 25%.
• A “development fee” of 2% is introduced, which can be paid through expenses that increase the company’s productivity, such as investment in innovation and development, acquisition of high technology services, protection of industrial property, or ISO certifications.
• IRC is levied at 22% on earnings distributed by companies to final taxpayers. This tax must be withheld by the distributing company.
  Distributions subject to this tax will be exempt from Personal Income Tax (“IGC” in Spanish). The maximum tax burden is 43.06%.
• IGC taxpayers whose effective rates are lower than 22% have the right to subject distribution to IGC instead of IRC.
• The integrated regime remains in effect for (a) taxpayers who are taxed on their presumptive income; (b) SMEs; and (c) foreign investors who are residents in countries that have a double tax treaty in force with Chile.
• A 1.8% deferral tax is established on undistributed earnings of companies with passive income (such as dividends, interest or real estate leases) representing more than 50% of their annual gross revenue. This tax applies to the business year 2024 but at a rate of 1%.
• A substitute tax on retained earnings (“ISUA” in Spanish) is introduced to achieve a transition from the current semi-integrated regime to the disintegrated system. Therefore, undistributed taxable profits at the close of the previous year will be subject to ISUA at a rate of 10% during business years 2023, 2024 and 2025. This rate increases to 12% for business years 2026 and 2027. The tax credits associated with this income cannot be used.
• A substitute tax is introduced for taxpayers with Reinvested Earnings (“FUR” in Spanish) at a rate of 15% and Excess Withdrawals at a rate of 32% at the end of business years 2022, 2023 and 2024.