Corporate Tax Rate Reduction: Pay Attention to Deferred Taxes
The gradual reduction in the First Category Tax represents good news for the future tax burden, but it may also produce accounting effects that should be assessed in advance.
The Reconstruction Law provides for a gradual reduction in the corporate tax rate: from 27% in 2026 to 25.5% in 2027, 24% in 2028, and 23% beginning in 2029.
If a company has a tax loss of CLP 1 billion and expects to recover the benefit using a 27% rate, the deferred tax asset could reach CLP 270 million. At a 23% rate, that same future benefit could fall to CLP 230 million.
The difference must be analyzed for accounting purposes and may affect earnings and equity, even when there is no immediate cash outflow.
What should companies review?
- Recognized deferred tax assets.
- Realistic expectations of recovery.
- Effects on financial indicators and covenants.
- The rate used to measure them.
- Impact on earnings and equity.
The corporate tax reduction should not be analyzed solely from the perspective of lower future taxes; it may require significant adjustments to the financial statements.
Source: Diario Financiero, August 2026.