Personal taxes

摘要

Residents in Chile pay personal income tax on monthly income based on multiples of a tax unit indexed for inflation (unidad tributaria mensual-UTM), which the central bank (Banco Central de Chile-BCCh) adjusts each month. (One UTM was worth Ps50,978 in January 2021.) The annual tax unit (unidad tributaria annual) is simply 12 times the monthly tax unit. The personal tax system had seven marginal tax rates, of 4-40%, in 2016. Law 20,780/2014 lowered the top tax bracket to 35% for the 2017 tax year. Law 21,210/2020, enacted in February 2020, reinstates the 40% tax bracket as of January 1st 2020.