Taxes

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TAX LAWS

In Chile, private mining is subject to 3 taxes:

1. Income tax:

  • It applies to the profit of all companies.
  • Currently, it is 22,5% (2016 tax year).
  • The rate will be gradually increased to 25% in 2017 in the case of Integrated System with Income Attribution, and up to 27% in 2018 in the case of Partial Imputation on Actual Distributions or Withdrawal Method.

The rate will be gradually increased to 25% in 2017 in the case of Integrated System with Income Attribution, and up to 27% in 2018 in the case of Partial Imputation on Actual Distributions or Withdrawal Method.

2. Additional tax:

  • It applies to profit taken out of the country.
  • It is 35%.
  • Income tax can be used as credit.

3. Special Mining tax:

  • It applies to the operating income of mining companies.
  • Average rates vary from 0% to 14%, depending on production volumes and operating margins.

All the previous mentioned taxe stranslate to a total taxation ranging from 35% to 42% on profit.

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