Faced with inquiries about withholdings in the withdrawal of 10% of the AFPs, the Internal Revenue Service (SII) clarified details alluding to the payment of contributions from the Disability and Survival Insurance (SIS) of independent workers.
The Service recalled that Mandatory social security contributions for paid workers are paid once a year, within the framework of the Income Declaration process.
In this way, it clarified that the withholding that some Pension Fund Administrators would be making charged to the withdrawal of 10% of the taxpayers’ funds, it is not related to the payment of the contributions corresponding to the Disability and Survival Insurance (SIS).
This is in line with what was stated by the Superintendency of Pensions, a body that instructed the AFPs to don’t consider the amount of SIS premiums deposited in the mandatory contribution accounts.
Social Protection Law for Honorary Workers
Law No. 21,133 established the obligation for self-employed workers to pay their social security contributions, totally or partially, as appropriate, with a charge to their tax refund, within the framework of the Income Operation carried out each year.
These contributions will grant you the following coverage in terms of social protection.
-Invalidity and Survival Insurance (SIS).
-Insurance of Occupational Accidents and Occupational Diseases (ATEP).
-Children’s Accompaniment Insurance (SANNA Law).
-Health (Fonasa and Isapre).
-Pensions (AFP). The pension contribution is at the bottom of the order of payments.
In the case of Disability and Survival Insurance, with the payment of their contributions in the Income Operation, workers have pprotection in case of accidents that permanently diminish, totally or partially, their work capacity.
This insurance provides protection, in the event of the death of the worker, to the spouse, children up to 18 years of age or up to 24 years of age if they are studying and the mother or father of children of non-marital affiliation, who may receive a survivor pension.
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