{"id":587,"date":"2016-04-14T21:03:00","date_gmt":"2016-04-15T00:03:00","guid":{"rendered":"https:\/\/www.hublegal.cl\/?p=587"},"modified":"2021-10-26T21:04:42","modified_gmt":"2021-10-27T00:04:42","slug":"company-owners-salary","status":"publish","type":"post","link":"https:\/\/www.hublegal.cl\/en\/2016\/04\/14\/company-owners-salary\/","title":{"rendered":"Company Owners Salary"},"content":{"rendered":"<p class=\"wp-block-paragraph\">In Chile, this concept is named \u201cSueldo Empresarial\u201d and is considered a tax benefit that allows company owners to deduct, as a company expense, the salary paid to the partner or owner, subject to compliance with the requirements and conditions required by law to enjoy the benefit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In other words it\u2019s a deductible expense for tax purposes that can be use in some kind of entities:&nbsp;<a href=\"https:\/\/www.hublegal.cl\/en\/2016\/03\/15\/partnerships-vs-corporations\/\">Partnerships<\/a>&nbsp;(as Sociedad de Responsabilidad Limitada) and Sole Proprietorships (as E.I.R.L or Empresario Individual).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This concept is regulated in the Law of Income Tax (Ley de Impuesto a la Renta o LIR) and has a maximum deductible amount, equal to the maximum amount that may be subject to mandatory retirement and health insurance deductions. (74,3 UF for this year 2016).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The mentioned requisites that must be met are the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The owners or partners of the company must be effectively and permanently working for the business or company. It may be more that one partner in a partnership if each one meets all the requisites.<\/li><li>The salary assigned to the owner must be affected by mandatory retirement and health insurance deductions.<\/li><li>The salary must pay the corresponding tax (Impuesto \u00danico de Segunda Categor\u00eda).<\/li><li>The salary and the related tax must be accounted in the corresponding period and must be done identifying the beneficiary.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The fact of paying the owners salary to one of the partners does not generate a labor relationship, because there is not a subordination or dependency between the worker and the employer, being both the same person. In this sense, is neither necessary to generate a labor contract that recognizes the obligation to pay the elected amount as owners salary.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The case is different for minority partners in a partnership (less than 50%) where the Labor Authority (Direcci\u00f3n del Trabajo) has said that they can be considered dependent workers of the partnerships and subject to all labor regulations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Everything paid in excess of the indicated amount to be treated as a deductible expense, must be considered a rejected expense (as established in the article 33 of the Law of Income Tax).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For&nbsp;<a href=\"https:\/\/www.hublegal.cl\/en\/2016\/03\/15\/partnerships-vs-corporations\/\">Corporations<\/a>&nbsp;the concepts over this matter differ from what has been explained, so we will revise it on another post.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Santiago Henr\u00edquez C., Lawyer<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Picture: Alexandre Perotto (CC0)<\/p>","protected":false},"excerpt":{"rendered":"<p>In Chile, this concept is named \u201cSueldo Empresarial\u201d and is considered a tax benefit that allows company owners to deduct, as a company expense, the salary paid to the partner or owner, subject to compliance with the requirements and conditions required by law to enjoy the benefit.<\/p>","protected":false},"author":2,"featured_media":585,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-587","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sin-categoria"],"_links":{"self":[{"href":"https:\/\/www.hublegal.cl\/en\/wp-json\/wp\/v2\/posts\/587","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.hublegal.cl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hublegal.cl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hublegal.cl\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hublegal.cl\/en\/wp-json\/wp\/v2\/comments?post=587"}],"version-history":[{"count":1,"href":"https:\/\/www.hublegal.cl\/en\/wp-json\/wp\/v2\/posts\/587\/revisions"}],"predecessor-version":[{"id":588,"href":"https:\/\/www.hublegal.cl\/en\/wp-json\/wp\/v2\/posts\/587\/revisions\/588"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.hublegal.cl\/en\/wp-json\/wp\/v2\/media\/585"}],"wp:attachment":[{"href":"https:\/\/www.hublegal.cl\/en\/wp-json\/wp\/v2\/media?parent=587"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hublegal.cl\/en\/wp-json\/wp\/v2\/categories?post=587"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hublegal.cl\/en\/wp-json\/wp\/v2\/tags?post=587"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}