{"id":11197,"date":"2019-04-08T17:24:49","date_gmt":"2019-04-08T20:24:49","guid":{"rendered":"https:\/\/vivirenchile.cl\/?p=11197"},"modified":"2019-04-08T17:27:49","modified_gmt":"2019-04-08T20:27:49","slug":"new-contribution-system-self-employed-workers","status":"publish","type":"post","link":"https:\/\/vivirenchile.cl\/en\/new-contribution-system-self-employed-workers\/","title":{"rendered":"New Contribution System for Self-Employed Workers"},"content":{"rendered":"
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As of February 2019, a new law for independent workers is in force, which modifies the norms of compulsory incorporation to the social security for workers who issue professional services invoices, establishing a gradual mechanism for the payment of contributions and access to pension and health benefits. This law has been in force since February 2, 2019, materializing in the<\/strong> Income Tax Declaration process in April of this year<\/strong>.<\/p>\n Under this new regulation, those workers who issue professional services invoices that meet the following conditions will be obliged to contribute:<\/p>\n In view of the aforementioned, those individuals who do not comply with said requirements, who already contribute for the taxable cap or who are pensioned for old age or total disability will not be obliged to contribute.<\/p>\n Self-employed workers will pay their social security contributions in the Income Tax Declaration process, with a charge to the tax withholdings from the fees, granting them the right to annual coverage of the different social security systems. Thus, the obligation will begin in the 2019 Annual Tax Return for 2018 income, covering the period from<\/strong> July 2019 to June 2020<\/strong>.<\/p>\n The benefits<\/strong> of incorporation into the social security system for the self-employed are as follows:<\/p>\n Although the law obliges workers who issue professional services invoices to contribute, it establishes two contribution options with different coverage and advantages:<\/p>\n In both options the amount withheld will gradually increase to 17%<\/strong> in 2028. Each worker will be able to choose between both alternatives in each Income Tax Declaration process, being able to alternate between both options each year between 2019 and 2028.<\/p>\n The Taxable Base<\/strong> on which the contributions for the different Social Security systems will be calculated will be 80% of the Annual Gross Income<\/strong> of each worker, so the contribution is equivalent to 17% of the gross income of the previous calendar year. The Internal Revenue Service will determine the contributions of self-employed workers.<\/p>\n Those honorary workers who start issuing invoices in 2019 must make voluntary payments as self-employed workers for all social security schemes until June 2020, if they want coverage during that period.<\/p>\n In relation to the AFP contribution, the percentage of the deduction that will go to AFP will depend on the system that each worker chooses, whereas in the Comprehensive Coverage system in 2019 3.04%<\/strong> of the deduction will go to the pension fund. Under the Partial Coverage regime, 0.56%<\/strong> of the amount withheld will be allocated to pensions during the same period.\u00a0 This is due to the fact that contributions for AFP remain in the last place in the order of payment of the pension systems.<\/p>\n <\/p>\n\n
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