Looking to hire in Chile

Employees must submit expenses within 60 days of the expense date or within 30 days after a business trip ends, whichever is later. Prior year expenses are not accepted after February 1 of the following year, and expenses incurred in November and December must be submitted by the end of the fiscal year.

Some expenses, including certain travel and equipment costs, must be supported by a tax invoice issued with the employer's information. To request invoices in the employer's name, employees need an E-RUT provided by the employer, which is personal, non-transferable, and valid throughout employment. All expenses must be reviewed and approved by the employee's manager, and any expense submitted without the required documentation will be treated as taxable.

Phone, internet, and coworking costs can be reimbursed tax-free when properly documented. A tax invoice or receipt must show the date, amount, the service provider or merchant name, and a brief description of the purchase or service.

Work equipment and office supplies are generally reimbursed on a non-taxable basis when supported by a tax invoice or receipt. Documentation must show the date, amount, the service provider or merchant name, and a description of the purchase or service; for software subscriptions, the employee’s name must also appear. For some low-value office equipment and promotional items, a receipt is acceptable below the stated local threshold.

Most business travel costs are non-taxable when backed by a tax invoice or receipt that clearly shows the date, amount, and relevant parties. For many travel expenses, tax invoices must include the employer’s name and tax ID, while receipts may need the employee’s name; mileage claims without documentation are treated as a taxable allowance.

Everyday meals, groceries, and business meals with clients or partners can be reimbursed tax-free when properly documented. For costs incurred in Chile, receipts or tax invoices often need to be marked as valid receipts and include a description of the purchase or service either in the document or in the claim description field.

Training, courses, books, and promotional items are generally non-taxable when supported by a tax invoice or receipt that shows the date, amount, merchant details, description, and in some cases the employee’s name. Gifts are treated differently depending on the recipient: gifts to clients are non-taxable, while gifts to the employee are taxable and reclassified as an allowance.

Bonuses in Chile include contractual and discretionary payments such as incentives and commissions. They are taxed as regular income and subject to applicable social security contributions, with progressive tax rates and withholding at source; this can lead to higher withholding in pay periods that include bonus payments.