Law 20241 Tax incentive for Research and Development (R&D) in Chile

The Law establishes a tax incentive for private investment in research and development (R&D). Its main objective is to promote the creation and strengthening of scientific and technological capabilities in the country. The actions include the provision of a 35% tax credit on payments made for certified R&D activities, and the possibility of deducting as expenses necessary to produce the income those costs that do not constitute credit. To access these benefits, taxpayers must enter into contracts with research centers registered with CORFO, which is also responsible for certifying and supervising said contracts and R&D projects. The law establishes clear criteria to define which activities qualify as R&D, excluding routine improvements and market studies, and details the registration and certification process for research centers, as well as the inspection procedures and applicable sanctions for non-compliance.