Chile’s tax authority has issued new guidance on the Second Category Income Tax for January 2026. The circular provides the definitive reference for tax calculations at the start of the 2026 fiscal period, outlining revised parameters, administrative rules, and inflation-linked adjustments.
Chile’s tax authority (Servicio de Impuestos Internos – SII) has issued Circular No. 67 of 10 December 2025, confirming the Second Category Income Tax values and calculation tables to be applied in January 2026.
The guidance, which marks the start of the 2026 fiscal period, sets out updated tax brackets and rates for individuals subject to monthly withholding, including general employees, pensioners, agricultural workers, and certain senior public officials.
A key update is the Monthly Tax Unit (Unidad Tributaria Mensual – UTM) value for January 2026, set at CLP 69,751. The circular also provides UTM values for previous months, supporting accurate comparisons and ongoing tax calculations. In addition, the document incorporates the Consumer Price Index (IPC) variations recorded throughout 2025, which underpin monetary correction mechanisms and ensure tax values reflect inflationary movement.
Beyond rate adjustments, Circular No. 67 clarifies several administrative processes relevant to employers and employees. These include rules for calculating monthly withholding obligations, reconciling contributions for taxpayers receiving income from more than one employer, and applying monetary correction to certain income streams.
