President Jose Antonio Kast has launched a sweeping reform package centered on a phased cut in Chile’s corporate tax rate from 27% to 23%, as the government seeks to revive economic growth, boost private investment and strengthen job stability.
Chile’s president, Jose Antonio Kast unveiled details of the long-awaited National Reconstruction Bill today, on 16 April 2026, a reform package that places a corporate tax cut at the centre of efforts to revive growth and promote job stability.
The headline measure in the package is a proposed gradual reduction in the corporate tax rate to 23% from 27%. The move forms part of a wider set of around 40 measures announced by the government.
The bill includes numerous tax-related measures intended to reduce revenues and boost private investment, with the corporate tax cut for large firms being the most prominent of these proposals.
Other tax measures include the creation of a tax credit for wage payments, aimed at encouraging smaller companies to pay employees on the books rather than under the table; a temporary VAT exemption on sales of new homes; property tax exemptions for homeowners over 65 on their primary residence; elimination of the 10% capital gains tax; and a transitory lower inheritance tax.
According to Kast, the package has five main aims: making Chile more tax competitive, strengthening formal employment, streamlining regulations, providing more legal and regulatory certainty, and exercising restraint in public spending.
