What it really costs the company to send someone to Chile: the promised package, the gross-up of the Chilean income tax, social security contributions and employer charges — in USD and CLP.
Compensation package
Tax policy
%
Annual allowances
ItemUSD / yearTreatment
TaxMover
Cost Projection
ANNUAL COST PROJECTION
Promised package
Salary and bonus (net of hypo)$108,000 USD
Grossed-up allowances$100,645 USD
Non-taxable allowances$2,800 USD
Extra cost of the Chilean assignment
Chilean income tax borne by the company$81,531 USD
Employer social security contributions in Chile$3,320 USD
Employer FICA (home country)$11,475 USD
For reference (not added to the total)
Hypo tax withheld from the employee$42,000 USD
Gross-up base$211,424 USD
TOTAL ANNUAL COST$310,550 USD
Multiple of base salary2.07×
Resulting monthly Chilean payslip (CLP)
Required base salary$23.470.221
Total taxable pay$23.689.335
AFP (pension fund)$388.688
Health insurance$257.166
Unemployment insurance (AFC)$33.113
Income tax (second category)$6.428.284
Employee net pay$16.802.850
For reference only. UF and UTM are inflation-indexed units. UF $40.820 · UTM $71.506 · USD $946. The projection monthlyizes the package (annual ÷ 12) and multiplies by 12: it does not model the annual tax reassessment. This is not tax, labor or social security advice: the hypo tax, the final tax liability and the application of Law 18,156 must be validated with your tax firm before committing to a package. · taxmover.com/simulators/cost-projection
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