Chile

Individual - Other taxes

Last reviewed - 02 June 2020

Social security contributions

Foreign individuals may be exempt from some local social security payments, provided they belong to a foreign social security entity system covering at least pension, disability, illness, and death. If not exempt, salaries are subject to Chilean social security contribution of 20%, computed on the monthly salary capped at 75.7 unidades de fomento (UF, which is a determined amount of Chilean pesos duly adjusted for inflation on a daily basis), which is approximately USD 3,048.65 per month, deductible for tax purposes as well.

Additionally, there are necessary contributions, not covered by the exemption mentioned above, of 3% in connection with unemployment insurance (0.6% contributed by the employee and 2.4% contributed by the employer) with a cap of UF 113.5 (approximately USD 4,570.96) and insurance that covers labour accidents and professional illness. The latter amount payable is calculated by taking into consideration the activities developed by the company and the duties of the employees.

In practice, non-residents normally are not subject to social security contributions in Chile.

Consumption taxes

Value-added tax (VAT)

VAT is payable on transfers and services at a rate of 19%. See the Other taxes section in the Corporate summary for more information.

Net wealth/worth taxes

There are no net wealth/worth taxes in Chile.