Chile

Individual - Sample personal income tax calculation

Last reviewed - 02 June 2020

Chilean employee or a foreign resident who contributes to Chilean social security system

  Amount (CLP*)
Gross income 3,900,000.00
Less:  
        Health contribution at 7% on a maximum of CLP 1,876,049 (131,323.43)
        Pension contribution at 12.5% on a maximum of CLP 1,876,049 (234,506.13)
        Unemployment insurance at 0.6% on a maximum of CLP 1,876,049 (11,256.29)
   
Taxable base 3,545,426.73
   
Tax rate 30.4%
   
Tax 1,077,809.73
   
Deduction (500,798.70)
   
Withholding tax 577,011.03

 * Chilean pesos

Foreign resident who maintains one’s social security abroad

  Amount (CLP)
Gross income 5,000,000.00
Total social security contribution (1,603,332.10)
Unemployment insurance at 0.6% of CLP 1,876,049 (11,256.29)
   
Taxable base 3,385,411.61
   
Tax rate 23%
   
Tax 778,644.67
   
Deduction (500,798.70)
   
Withholding tax 277,845.97

It is important to mention that social security contributions paid by the employer are considered as taxable income, but they may be deducted for tax purposes unto a cap of UF 75.7 during 2017.

UF 1 equals CLP 26,664.2 as of 28 June 2017.