Companies in Chile with active contracts for independent workers or providers under the "fees receipts" (boletas de honorarios) modality must anticipate significant regulatory changes. As of January 1, 2026, electronic receipts issued by independent individuals will see an increase in their withholding rate compared to the previous year. Therefore, it is essential to integrate this legal adjustment into financial planning to ensure that the management of external collaborators complies with the new provision. 

According to the Internal Revenue Service (SII, in Spanish; IRS, in English), the withholding tax on each invoice will increase from 14.5% to 15.25%. 

Which are the free withholdings in Chile? 

The gradual increase in the withholding of fees has been instructed by Law No. 21,133, published on February 2, 2019. This law establishes the incorporation of fee-paid workers into the Social Protection regimes, which will allow them to have access to the same coverage as those who work as employees. Among such coverage are the following: 

• Family allowances; 

• Social Insurance against Occupational Accident Risks and Occupational Diseases (ATEP); 

• Disability, Survivorship, and Old Age Pensions; 

• Mortuary Quota; 

• Health system, among others. 

Under the regulatory framework, contributions will continue to increase gradually as follows: 

• 2019–2026: annual increase of 0.75%. 

• 2027: increase of 0.75% (reaching 16%). 

• 2028: increase of 1% (reaching a final total of 17%). 

About the Contribution Process 

To determine the contribution amount for each fee-based worker, the process is linked to the annual income tax return filed with the SII. The taxpayer reports both their annual fees and the withholdings applied to their receipts. With this information, the SII determines the contribution amounts and informs the General Treasury of the Republic (TGR), which then transfers these payments to the corresponding social security entities. 

From the perspective of companies receiving these receipts, they will see an increased withholding percentage starting January 1, 2026. Consequently, if the agreed gross amount remains unchanged, the net amount payable to the issuer will be reduced due to the legal withholding increase. It is crucial for companies to communicate with their providers/independent workers to avoid any issues regarding the resulting payment amounts. 

Finally, it should be noted that this change does not affect the special case of directors' fees receipts, for which the withholding remains frozen at 10%. 

If you wish to expand your multinational operations or investment fund into Chile, do not hesitate to contact us. We facilitate your international expansion through our comprehensive financial services in LATAM. 

At Auxadi, we offer comprehensive services in accounting, tax, payroll, transfer pricing and corporate legal services to multinationals and funds. With experience since 1979 and a presence in over 50 countries, including 26 proprietary subsidiaries, our advanced technological platform and proven methodology enable us to guarantee efficient management in compliance with local regulations. 

Author:

Belén Isla

Tax Manager – CL