|International Tax Rules||36||35.86|
Chile ranks 32nd overall on the 2019 International Tax Competitiveness Index, one spot better than in 2018.
- The VAT is at the average for OECD countries, and applies to a broad base.
- Chile provides for net operating losses to be carried forward indefinitely, allowing for corporations to be taxed on their average profitability.
- Chile has the lowest tax wedge on labor among OECD countries, at 7 percent, compared to the average of 36.1 percent.
- Labor and consumption taxes are complex, creating a serious compliance burden.
- Chile has poor treatment of corporate investments in machinery and buildings and does not allow companies to write off investment in intangibles.
- Chile has a worldwide tax system, while most countries have territorial provisions.