The IDPC rate will be reduced to 12.5% and the PPM for Pro Pymes taxpayers will be reduced to 50%.
On July 11, 2025, Law No. 21,755 was published in the Official Gazette, which modifies the legal bodies indicated in matters of regulatory simplification and promotion of economic activity.
Some of these changes correspond to the following:
- Amendment to the Income Tax Law:
Reduction of the First Category Tax (IDPC) to a 12.5% rate and 50% reduction of the Monthly Provisional Payments (PPM) to Pro Pymes taxpayers.
- Business years 2025, 2026 and 2027*: The rate will be reduced to 12.5%, in addition to a 50% reduction in the PPM from September 2025.
- Business year 2028*: The rate will increase to 15%.
(*) Important: These reductions will only be applicable, provided that at the end of the fiscal year the employer’s social security contribution rate established by the fourth transitory article of Law 21.735 corresponds to 1% for business year 2025, 3.5% for 2026, 4.5% for 2027, and 5% for 2028.
2. Amendment to the Tax Code:
a. Issuers of prepaid cards, both bank and non-bank, are included in the financial reporting obligations to the Internal Revenue Service (SII).
b. The rule of Article 100 bis is modified with respect to penalties for tax evasion.
It is established that the Internal Revenue Service (SII) must request the application of the corresponding fine at the time of requesting the court to declare the existence of abuse or simulation.
Once the court declares the existence of the tax evasion, it will have to pronounce in the same sentence on the origin and the amount of the fine. This penalty will not be subject to claim, except in case of error in the determination of the amount fixed by the judgment.
Finally, the fine will only be enforceable once the judgment becomes final and enforceable, and its collection will be barred within three years from that date.
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
Catalina Rojas | Senior Associate | crojas@az.cl
Javiera Melo | Associate | jmelo@az.cl
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