In the next article, we will show you how is the single tax calculated in Chile if you work, completely independently. Learn to calculate your taxes quickly and easily!
How is the single tax calculated?
When we speak of own taxes, we refer to that amount of money that a citizen must pay to the state for an expense, which is applied to the income that must be paid for taxes, created by the workers, who themselves must pay the said amount of taxes in relation to their salary, this must not exceed 13,5 UTM (Monthly Tax Unit) per month.
According to the Chilean Tax Reform in 2020, those workers with a monthly salary of more than 15.000.000, have the obligation to pay 5% more in taxes.
Workers do not have to file the annual income statement, if it is not the employer who does it for them.
Single second category tax
They are those progressive taxes directed to the salaries, wages and pensions of the workers of a company, which are paid monthly and also updated, this amount does not exceed 13,5 UTM (Monthly Tax Unit).
When we say that it is "sole" we mean that the worker has the obligation to comply with his public law income in a mandatory manner, in case his work is his only source of resources, if that were the matter, he does not have the obligation to present to the government the amount of money earned during the year.
The single second category tax must be paid only by those people who receive a specified amount greater than 13,5 monthly deductibles from the gross income of necessary expenses to additions or decreases regulated by law, the results are the basis for the corresponding taxes.
These are applied after deducting the payment of the fee from the Pension Fund Administrators, health and any other type of income that is considered "non-remuneration". The amount that is reduced from the worker's land must be reflected in the liquidation.
According to the 2020 Tax Reform, the previous tranche of 35% has been updated to a new tranche of 40%, which is included in this type of single tax, for all those workers with annual incomes that exceed 15.000.000 monthly. .
Terms you should know
To have a better context about the terms that I know to know how the single tax is calculated, the following should be known:
AFP or Administrators of Own Funds
It is a financial institution located in Chile, which is private, they are commissioned to manage the capital of private savings accounts for pensions. According to the individual capitalization system, any person who has savings that is directed to his income, to maintain his pension when he decides to retire.
Unemployment
When an employee loses his job, the severance pay ensures that he has all the necessary means to survive, while he finds another job.
To calculate unemployment insurance, 0,6% must be multiplied by the insurance ceiling. This 0,6% represents what an official must pay, because the contract has a term that is not defined.
insurance severance
They are those benefits that are granted as insurance in some countries, in case a person is left without a job, until they can find a new one and support themselves.
Tax base
It consists of the amount, which is obtained from an explicit tax. In order to have a tax quota, it is first necessary to calculate what the tax base is.
Method to pay the single tax
One way to know how the single tax is calculated, first the assigned amount of tax effect is due, which is generated by the employee, this being the capital amount of a taxable event, of a salary, pension, income, among others. others.
In this way, the price established for the workers is subtracted from the tax base in the Own Funds Administrators (Financial Institutions), unemployment insurance, health income, etc. When the total sum is obtained, the exempt factor must be multiplied to the table and then the corresponding discount is designated, according to what the table indicates.
Let's say, for example, that on a monthly basis the tax base is 1.500.950, and the May 2018 table shows that the exempt factor is 0.05 and the reduction says that an amount of 32.000,34 must be used.
To solve this calculation and know what the single tax is, the tax base must be multiplied by the exempt factor, then the result must be subtracted from the reduction. That is, it would be done as follows:
1.500.950 (tax base) x 0.05 (exempt factor) = 75.047,5
75.047,5 – 32.000,42 (reduction)= 43.047,08 single tax.
In other words, the tax to be paid in the single tax is 43.047,08, which was the total he gave us, this tells us how the single tax is calculated.
Example 2
We will give you another example, in this case to simplify the information and make it more understandable. Let's say Maria wants to calculate her one-time tax. Her tax base is 6.026.520,01, according to the April 2020 table, her factor is 0,35 and the reduction is 1.171.153,72.
To make this calculation, the same formula mentioned above must be applied: The tax base is multiplied by the exempt factor and the reduction is subtracted.
(6.026.520,01 x 0,35) – 1.171.153,72 = 938.283,283 – This would be the tax value that must be paid.
It is important to know that, to calculate health, social security and unemployment insurance, you must take into account the Topes published according to the month and year in the system.
If you liked this article, we invite you to read How to calculate the gross salary correctly in Chile?. Expand your knowledge!
If you want more information on this topic, we invite you to watch the following video: