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 are expanding into Chile. Before you get started hiring employees, there are some important aspects to consider.
The corporate tax rate is expected to be 27% in 2019 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
- Profit sharing for employees is required
- 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
The Chilean government is considering more strict immigration requirements, only offering visas to skilled workers, so it is important to stay ahead of specific employment regulations before hiring employees in Chile.
Blue Marble simplifies the payroll and HR compliance for companies doing business in Chile. Our cloud-based technology with customized, monthly reporting allows you to view your payroll across all countries and currencies. Our unique service model gives you a US-based team and in-country experts in Chile that can help when questions come up. Talk to us today to simplify your global operations and payroll – save time and resources so you can focus on growth.