Employer Tax Contributions

Tax Type	Rate	Base
Unemployment Insurance (Indefinite Contract)	2.4%	Monthly salary (capped)
Unemployment Insurance (Fixed-Term Contract)	3%	Monthly salary (capped)
Work Accident & Occupational Disease Insurance	0.95% - 3.4% (varies by risk)	Taxable remuneration
Disability and Survival Insurance (SIS)	1% - 1.5% or 1.85%	Monthly remuneration

Filing & Compliance

• Monthly tax and social security payments are due by the 13th of the month following the payroll period; extended to the 20th if paid online.
• Annual Income Declaration (Form 1887), summarizing income and taxes withheld for employees, is typically due by March of the following year.
• Annual tax returns (Form 22) are due by April 30 for balances due, or May 7 for refunds, in the year following the income receipt.

In Chile, employee tax deductions encompass income tax, mandatory social security contributions, and voluntary pension contributions.

Income Tax

Income tax is levied progressively, ranging from 0% to 40% based on income brackets defined in Unidades de Fomento (UF), a unit adjusted daily for inflation. Tax is withheld monthly by the employer. For 2025, some general brackets include:

• 0%: Up to 13.5 UF
• 4%: 13.5 UF - 30 UF
• 8%: 30 UF - 50 UF
• 40%: over 310 UF and above

Social Security Contributions

Employees contribute approximately 17.6% of their salary to social security, covering:

• Pension (approximately 10%)
• Health insurance
• Disability and survivor's insurance

Voluntary Pension Contributions (APV)

Employees can make voluntary contributions to a private pension fund (APV) up to a limit of 50 UF monthly or 600 UF annually. These contributions are deductible from taxable income. Withdrawals are subject to a 15% tax.

Other Deductions

• Mortgage Interest: Residents can deduct mortgage interest up to 8 UF annually, subject to income limitations. This deduction phases out for incomes above 150 UF annually.

Deadlines and Procedures

• Annual Tax Return: Due by April 30th of the following year. Employees file using Form 22.
• Monthly Payroll Deductions: Employers withhold taxes and social security monthly. Monthly declarations of payroll taxes are due by the 12th of the following month.

It is important to note that this information is current as of today February 5, 2025, and might be subject to change due to legal or regulatory updates. Consulting with a tax professional for the most current information is advised.