Law No. 21,681 (Law), published in the Chilean Official Gazette on 1 July 2024, creates a Temporary Emergency Fund for fires and establishes other measures for reconstruction, establishing an optional regime of substitute tax for final taxes (e.g., dividend withholding tax), referred to hereafter as "ISIF."
Background
Under current law, dividend distributions made from Chile are subject to a dividend withholding tax at a 35% rate. All (100%) of the corporate income tax paid by the Chilean company …