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SANTIAGO – Evelyn Matthei, Chile’s center-right presidential contender, has unveiled a proposal to reduce the country’s corporate tax rate from 27% to 18% over the next decade. The tax cut, aimed at spurring economic growth and job creation, is central to her campaign ahead of the November presidential election.
As Chile’s presidential election approaches, Evelyn Matthei is ramping up her campaign to challenge incumbent President Gabriel Boric’s economic policies. One of the most significant elements of her platform is the reduction of corporate taxes to encourage business investment and foster job growth. With the Chilean economy growing at a sluggish 2% and job creation lagging, Matthei argues that high tax rates are a major impediment to economic dynamism.
Key Changes & What’s Required
- Proposed Tax Cut: Matthei plans to lower the corporate tax rate from 27% to 18% over a 10-year period.
- Strategic Implementation: The tax cuts will be phased in alongside growth targets, fiscal responsibility, and improved efficiency in government spending.
- Tax Invariability for Investments: She also aims to stabilize tax policy for both local and foreign capital to attract large investment projects.
Matthei’s tax plan would affect both domestic and international businesses operating in Chile. With no immediate drastic cuts but a steady reduction over the next decade, businesses would benefit from long-term predictability and lower tax burdens, especially in sectors with significant investment potential, such as real estate and manufacturing.
Economic Impact
Chile’s economy has been facing sluggish growth rates in recent years, with GDP expanding just 2.6% in 2024—far below the nearly 6% growth rate seen at the start of the decade. Matthei contends that lowering corporate taxes will stimulate business activity, increase investment, and, most importantly, create jobs.
Matthei is also emphasizing the importance of security for investment, pointing to concerns over safety and crime as barriers to greater foreign capital inflows into the country.
Matthei’s proposal comes amid shifting political tides, as a recent poll by Cadem showed her lead in the presidential race narrowing. From 26% support in December, she now stands at 17%, while her hard-right opponent Johannes Kaiser has seen a surge in popularity.
The upcoming elections, slated for November 16, 2025, may require a run-off vote in December if no candidate secures a majority. With Chile’s economic future at stake, Matthei’s tax cut proposal is gaining attention as a central issue for voters and businesses alike.
Quotes, Data, and Expert Opinions
Evelyn Matthei’s plan to lower corporate taxes could have a positive impact on Chile’s stagnating economy. However, the challenge will be balancing these cuts with the country’s fiscal responsibilities and ensuring that these tax breaks lead to increased investments and jobs.
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