The Chilean tax authority has announced Resolution No. 132 of 20 November 2023, which outlines that digital platform operators must issue electronic third-party service provision pay slips to independent freelancers who provide services to users of the platform.
Pay slips for independent freelancers should be issued by the 5th day of the month following the month in which services are provided. In accordance with the resolution, the pay slips must include the corresponding service fee for the worker. Additionally, the pay slips must also include the amount of tax that must be withheld and reported monthly by the digital platform under Article 74(2) of the Income Tax Law.
According to Article 74(2) of the Income Tax Law, there is a requirement to withhold 17% of the fees paid to independent freelance workers.
The Resolution also mandates that digital platform operators must submit an annual declaration on withholdings made via Form 1879. Furthermore, the Resolution states that independent freelancers don’t need to issue electronic pay slips when offering services to users of digital platform operators in Chile.
