INSUBCONTINENT EXCLUSIVE:
Chile currently maintains the tenth highest corporate tax rate among OECD members.The current 27% rate sits well above the OECD average of
Ireland and Lithuania.The government simultaneously pursues its own tax reform effort
Finance Minister Mario Marcel aims to reduce the corporate rate to 24% or potentially lower through various legislative proposals.These
efforts faced a significant setback when opposition coalition Chile Vamos rejected any compensatory tax increases
Tax Cut Despite Revenue Concerns
revenue losses from such a dramatic rate reduction
This places the country 37th out of 38 member states in terms of tax collection capacity
Any major revenue reduction creates additional fiscal sustainability challenges.The current tax system provides some differentiation
Large companies pay 27% under the partially integrated system, while small and medium enterprises enjoy a reduced 25% rate
Projections indicate solid performance at 2.3% in 2025 and 2.1% in 2026
Matthei and other candidates must balance growth incentives against vital public revenue needs as the presidential race intensifies.
