Doing Business 227Freelance Work
It may appeal to you to do freelance work while in Chile,
especially if your spouse has a work permit. Every time
you receive payment for your work, you must give your
client a receipt of honorarium or Boleta de Honorarios. You
save a copy for your income tax declaration. You cannot
be paid for work unless you provide your client with a
boleta. Earnings are generally subject to a 10 per cent
withholding tax, but you can negotiate with your clients
whether your fee is líquido (net: the amount after the
withholding tax) or bruto (gross: the full amount from
which you yourself will pay the 10 per cent withholding).
The income recorded on your boletas must be reported on
your annual income tax declaration.
The paperwork is really overwhelming to get a Boleta
de Honorarios, but well worth the effort. First, you must
apply for an RUT (taxpayer identification number), which
in and of itself requires major paperwork. Having been
assigned an RUT you can then order the actual book of
receipts, the talonario de boletas, at any small printer’s
shop. You must include your address, full name, field
of activity and RUT. Every boleta in this book must be
stamped by the Servicio de Impuestos Internos, the Chilean
internal tax collector. In order to get that stamp, an
application called Iniciación de Actividades must be
completed. Do not be scared off though, the paperwork
required in Chile is no more excessive than that required
to work in other countries. Give yourself plenty of time to
get the necessary papers and have it all approved.
The Boleta de Honorarios should not be confused with
the sales receipt or boleta, which every merchant or
service provider will give you for almost all transactions (as
mandated by law). Unless you need them to justify expenses
or to exchange an item, these boletas, which multiply like
rabbits, are of no use.
When buying at large supermarkets, gas stations or
stores selling intermediary goods you may be asked
“boleta o factura?” meaning “sales receipt or invoice?” The
factura or invoice is for individuals or corporations that