Chile releases ceilings for 2014 social security contributions

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Chilean Taxation Office increased the limits related to social security contributions and employment tax withholding, reports Nair & Co.

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Chile releases ceilings for 2014 social security contributions

  1. 1. Chile Releases Ceilings for 2014 Social Security Contributions Effective 1 January 2014, the Chilean Taxation Office increased the limits related to social security contributions and employment tax withholding, reports Nair & Co. which provides global HR services for companies setting up foreign operations. The maximum contributions are now calculated as follows: Contributions Rates Mandatory Pension (AFP) and Calculated over a monthly Mandatory Health (Isapre) Applicable to - salary limit of UF 72.30 (up from UF 70.30 in local employees working in Chile - 2013) expatriates who contribute to their Chilean pension/health while being schemes outside the country - Expatriates working in Chile and contributing to their Chilean pension/health schemes Unemployment Insurance Calculated over a cap of UF 108.50 (up from UF 105.40 in 2013) - Both employer employee contributions and
  2. 2. Companies with operations in Chile should consider these changes when forecasting employment costs and preparing employment contributions. Also, companies must update internal systems and processes to ensure appropriate withholding from salary payouts to employees. For more information about doing business overseas or to learn more about our International Payroll Services team please contact us. Subscribe to regular global tax compliance alerts from Nair & Co. Get the latest news releases and updates on international tax, HR, Finance, compliance and other legal news at Nair & Co. Industry Alerts. About Nair & Co. Nair & Co., the leader in international business expansion services, provides accounting, HR, legal, tax and compliance services for the set up and management of your international operations. Our model of a single-point-of-contact, supported by internal teams of experienced advisors, helps clients expand business and manage risk so they can focus on their core business and sustain growth with minimal risk, stress and cost. We support nearly 250 clients in over 70 countries. Nair & Co. is headquartered in Bristol, UK, has 450 employees and offices in China, India, Japan, Singapore, and the US. Learn more at www.nair-co.com Media Contacts: For media enquiries or to learn to more about Nair & Co., please email us at media@nair-co.com or call Yvonne Smith at +1.408.501.8867

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