Foreign investors in Chile require to consider the effect of tax reform changes. According to the prior tax regime, Chile had a combined tax system whereby the corporate income tax paid by the Chilean entity was added to the foreign shareholder tax paid by the shareholder for an integrated 35% Chilean tax burden. This system forced 22.5% tax rate on profits at the corporate level and if profits were circulated to foreign shareholders, an extra 35% tax withheld applied. Under Chile’s integrated system, 12.5% net withholding tax rate or foreign shareholder tax rate on dividends was made. From 1st January 2017, taxpayers can elect to be taxed under two different regimes. These are “attribution regime” or the “alternative regime.”