https://blog.novatax.cl/en/tags/tax-incentive/Recent content in Tax incentive on NovaTax BlogHugoen-usSun, 06 Sep 2026 00:00:00 +0000https://blog.novatax.cl/en/ley-id-chile/Sun, 06 Sep 2026 00:00:00 +0000https://blog.novatax.cl/en/ley-id-chile/<p>Chile invests little in research and development. To change that, the government created an incentive that few companies take advantage of: the <strong>R&amp;D Law (Ley I+D, Law No. 20,241)</strong>, which lets a company recover a significant share of its R&amp;D spending through its taxes.</p> <p>This article explains what the law is, which activities qualify, how much the benefit is worth and how to activate it.</p> <h2 id="what-is-the-rd-law">What is the R&amp;D Law?</h2> <p>Law 20,241 establishes a <strong>tax incentive for private investment in research and development</strong>. It was enacted in 2008 and reformed in 2012 by Law 20,570, which made it far more flexible: it added projects carried out with the company&rsquo;s own capabilities (&ldquo;intramural&rdquo;), removed the cap of 15% of gross income and raised the annual credit limit to 15,000 UTM.</p>