Final Taxes

In Chile, the Final Tax system is used to determine the amount of tax owed by individuals and businesses on their income. The Final Tax system means that the tax due on income is calculated once, and there is no further tax liability on that income.

There are two types of final taxes in Chile: the Global Complementary Tax and the Additional Tax.

The Global Complementary Tax is a tax levied on an individual's total taxable income, including both their employment income and any other sources of income. This tax is calculated on a progressive scale, with higher rates for higher levels of income.

The Additional Tax is a tax levied on businesses and individuals without Tax Residence within the Chilean territory. It is a flat tax rate of 35% on the distributed profits. This tax is in addition to the Corporate Tax that businesses must pay on their profits.

It's worth noting that in Chile, the Final Tax system applies to most income sources, but there are some exceptions, such as income earned from property rentals or capital gains from the sale of assets. In these cases, taxpayers may still have to pay additional taxes beyond the Final Tax.

Final Taxes

Global Complementary Tax	Chilean Resident Individuals
	0 - 40% (more than 285,751 USD In earnings per year per individual are taxed at a 40% rate).

Additional Tax	Nonresident individuals and Nonresident legal entities
	35% Flat Rate

Additional Tax	Specific Service Tax Rate
Software	15%
Royalties	30%
Professional Services	15%
Engineering or techincal work	15%
Interest on Loans (related Parties)	35%
Interest on loans to bank and financial institutions	4%