New First Category Tax Rate for Small and Medium-Sized Companies

IDCP rate for companies under the Pro-Pyme General regime will be reduced to 12.5% until 2027.

On January 22, 2007, amendments were made to the bill called “Regulatory Simplification and Promotion of Economic Activity”.

These indications modify the principles established in Law No. 21,578 published on May 30, 2023, to make the regulations more effective in terms of supporting economic activity.

Among the main novelties in tax matters, the following stand out:

1. Reduction of the First Category Tax (IDPC) for companies of the Pro-Pyme General regime:

As of 2025, the IDPC rate for these companies is 25%.

• Business years 2025, 2026 and 2027: The rate will be reduced to 12.5%, in addition to a 50% reduction in the Monthly Provisional Payments (PPM).
• Business year 2028: The rate will increase to 15%.

2. New reporting obligations for prepaid card issuers:

Issuers of prepaid cards, both bank and non-bank, are included in the financial reporting obligations to the Internal Revenue Service (SII).

What must they report?

• Accounts that receive more than 50 transfers from different persons in a month or more than 100 transfers in a 6-month period.

For more information please contact our Tax team:

Rodrigo Albagli | Partner | ralbagli@az.cl

Álvaro Rosenblut | Partner | arosenblut@az.cl

Andrea Bobadilla | Director Tax Group | abobadilla@az.cl

Valentina Herrera | Associate | vherrera@az.cl

Javiera Melo | Associate | jmelo@az.cl

Be part of our multimedia platform and you can receive the latest legal news, events, podcazt and webinars.

Subscribe to our Newsletter here.