Chile Tax Agency Issues Circular on Temporarily Reduced Rates Under Pro-SME Regime

The Chilean Internal Revenue Service Sept. 3 issued Circular No. 53, on the temporarily reduced first category tax (IDPC) and monthly provisional payment (PPM) rates under the pro-small and medium-sized enterprise (SME) regime. The circular includes: 1) required year-end contributions from covered SMEs at rates of 1 percent from August 2025, 3.5 percent from August 2026, 4.25 percent from August 2027, and 5 percent from August 2028; 2) reduced IDPC rates of 12.5 percent for 2025-2027 and 15 percent for 2028; 3) the implementation of PPM rates at 0.125 percent for new businesses and those earning up to 50,000 account ...