CAPITAL GAINS

Currently, in the case of a natural person resident in Chile, capital gains on the transfer of shares are subject to a personal income tax at a rate equivalent to the marginal average rate of the personal income tax during the period in which the taxpayer owned the shares. In the case of non-residents, a 35% withholding tax rate applies.
The Tax Reform establishes the possibility for individuals to be subject to a single tax over capital gains at a 20% tax rate, thus reducing the current maximum rate. However, this reduced capital gains tax rate of 20% only benefits individuals who are residents of Chile.