New maximum caps to calculate social security and employment tax withholding announced in Chile

Global Watch ()
The Chilean Taxation Office has advised that effective January 1, 2014, there are new maximum caps to calculate social security contributions and the relevant allowable deductions for withholding employment tax purposes. These caps relate to the calculation of mandatory pension (AFP), mandatory health (Isapre), as well as unemployment insurance contributions. Global mobility professionals should consider updating their expatriate population’s secondment payments, hypothetical tax calculations, as well as secondment cost projections to reflect these new changes.