Doing Business in Chile

Foreign Direct Investment In Chile

The Government has focused developing a stable economy and political environment to provide businesses with a consistent economy to operate within.  The Government welcomes inward investment from foreign entities, particularly in growing markets that are key for the future long term Chile GDP.

Registering A Company and Establishing an Entity In Chile

Registrations to the tax and social security authorities for companies looking to process payroll in Chile include; “Registro Publico de Comercio” and “Servicio de Impuestos Internos”.  The estimated timeline for the completion process is between 15 and 20 days with the inscription to Registro Publico de Comercio.

Business Banking In Chile

It is mandatory to make payments to Employees and authorities from an in-country bank account.

Banks are opened from 0900 to 1400 Monday to Saturday and are closed on Saturdays and Sundays.

Working Week And Working Hours In Chile

The Working Week in Chile is Monday to Friday. In Chile the standard working week is usually made up of 45 hours.

Basic Facts about Chile

General Information

Population: 17.3 million (UN, 2011)

Capital: Santiago Major

Language: Spanish Major

Religion: Christianity

Monetary Unit: Chilean peso CLP (The symbol used locally for it is $)

Main Exports: Copper, fish, fruit, paper, pulp and chemicals

GNI per Capita: US$10,120 (World Bank, 2010)

Internet Domain: .cl

International Dialing Code: +56

Hello Hola

Good morning Buenos días

Good evening buenas noches

Do you speak English? Habla usted Inglés?

Good bye Adiós

Thank you Muchas gracias

See you later Hasta luego

Dates are usually written in the day, month and year sequence. For example, 1 July 2014 or 1/7/14.

Numbers are written with a period to denote thousands and a comma to denote fractions. For example, CLP$ 3.000,50 (three thousand peso and fifty centavos).

 

Income Tax & Social Security In Chile

The Tax Year runs from 1st January to 31st December.

Income Tax In Chile

Employee deductions for Taxes range from 4% to 40% depending on Income level.

Monthly contributions must be made from the 10th-12th of every month to the tax authority. The typical penalty awarded for the late submission and payment of tax contributions is 2-5 %.

Social Security in Chile

Employee deductions for Social security come to around 20 %

  • 10 % Pension Fund System
  • 7% Health Insurance
  • 0.6% is Unemployment Insurance
  • 0.95% Chilean Association.

There may also be a further contribution for “heavy” work - depending on the level of accident risk relating to the company’s activity. For this, the employer and the employee must contribute 2% of the salary

The typical penalty awarded for the late submission and payment of tax contributions is 2-5 %

Reporting Tax In Chile

Monthly

  • The Employer must pay taxes to the SII (Servicio de Impuestos Internos, national tax agency) and the applicable Social Security Institutions.

Yearly

  • In March, the Employer must present an annual income report to the SII for each Employee with the detail of retentions during the last year.

New Starts In Chile

It is mandatory for the employer to publish its own social constitution in the official bulletin, and it must register itself in the Public Commerce Registry. It is also obliged to notify the start of activities towards the SII.

A new employee must be registered with the authorities within 60 days from the start date of employment, in which the company has to present its structure to the SII and await authorisation to start operations.

The following information is required to set up a new start:

  • Full Name
  • RUT
  • Date of Birth
  • Address
  • Salary
  • Pension Insurance
  • Health Insurance
  • Other information about hiring

Leavers In Chile

For a leaver the company has to notify the Inspeccion del Trabajo.

The deadline for an employee’s final payment in Chile is 10 working days

The full guide is available in PDF format for registered users.

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