It is worth noting that, by law, the increase in withholding rates has been established as gradual, rising by 0.75% each year until reaching 17% in 2028.
As of January 1, 2025, each time a taxpayer issues a fee receipt, the withholding rate will be 14.5%, increasing by 0.75% compared to 2024.
It is worth noting that, by law, the increase in withholding rates has been established as gradual, rising by 0.75% each year until reaching 17% in 2028.
Who does this change apply to?
This new withholding percentage applies to all issuers of fee receipts and issuers of third-party service receipts, affecting more than 1,000,000 people in Chile. For example, more than 300,000 independent workers exist in the public sector alone.
The exception is company directors’ receipts, which remain fixed at 10%.
Download the full Tax Alert here.