Chile Unveils Economic Reforms with Major Corporate Tax Cut Plan

Chile’s President José Antonio Kast has introduced a broad set of economic reforms, aimed at boosting economic growth, creating job creation opportunities, and improving business investment.

In a national address, Kast outlined nearly 40 measures focused on strengthening the Chile economy and making processes easier for businesses. The most notable proposal is a gradual reduction in the corporate tax cut from 27% to 23% over four years. The government believes this step will improve tax competitiveness and attract more investors.

The reform plan is built around key priorities such as simplifying regulations, promoting formal employment, ensuring legal clarity, and maintaining fiscal discipline. Kast stressed that the approach is practical and focused on solving current economic challenges.

• José Antonio Kast proposes corporate tax cut to boost growth
• Chile reform plan targets jobs, investment, and SMEs
• Economic measures aim to improve competitiveness and stability

To support employment, the government plans to introduce a tax credit linked to wages. This move is expected to benefit SMEs support, helping smaller businesses expand and hire more workers while shifting jobs into the formal sector.

The proposals also include faster approvals for large projects, particularly in mining sector reforms, to reduce delays and encourage investments. A temporary relief on new home sales has been suggested to support housing market relief. In addition, financial aid will be provided to wildfire-hit areas, and tax benefits are planned for senior citizens.

The administration aims to raise annual growth to around 4%, up from about 2.5% last year. However, experts remain cautious due to global uncertainties that may impact progress.

Kast’s reform agenda could face hurdles in Congress, as his coalition lacks a majority. Opposition leaders have questioned whether such measures, especially tax reductions, will deliver broad-based benefits.

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Despite this, the government is moving ahead, presenting these reforms as crucial for long-term stability and sustained development in Chile.