Chile is one of the most economically and socially stable countries in South America. With the ease of doing business there and so many opportunities for growth, many companies find expansion into Chile is a seamless process. Before you get started hiring employees, there are some important payroll and labor aspects to consider.
The corporate tax rate is 27% for companies operating in Chile, with additional withholding taxes applied to branch office profits for certain businesses. Advance tax payments are required on a monthly basis, and tax returns must be submitted in April of each year.
Hiring employees in Chile is regulated by specific government regulations, including:
- Employment contracts are required within 15 days after employees begin work
- Mandatory pension contributions are required for companies as part of the social security filing each month
- Some industries have collective bargaining agreements, but most CBAs are established by each company depending on the type of work required
- Foreign nationals must obtain a work visa (valid for 2 years) before beginning work in Chile
- Foreigner with a temporary residency visa (valid for 1 year) can apply for a work visa once they have a job offer
There are flexible funding options for your payroll in Chile, as it is not required to have a local, in-country bank account to pay employees. You can fund payroll in USD and Blue Marble money movement will settle in the local currency. If you have a local bank account, you have a choice to pay employees directly, or use our in-country provider for salary and statutory payments. Employee income tax must be paid directly by the company, along with company taxes.
Blue Marble has simplified payroll and HR compliance in Chile. Our cloud-based technology platform with customized, monthly reporting allows you to view your payroll across all countries and currencies in real-time. We offer a unique, hybrid service model with a dedicated US-based team and in-country experts in Chile to help when questions come up. Talk to us today to simplify your global operations and payroll in Chile.