Form 1887: Annual Sworn Declaration on Income of Art. 42

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The salary statement either form 1887 It is a document made manually or electronically that corresponds to the rent payments of the Article 42 No. 1 of the Chilean Income Lawin addition to the remunerations and withholdings of the single second category tax of the same.

When serving as a partner or owner of a business, the Internal Revenue Service requires those responsible (whether natural or legal persons) to declare annual income payments to their employees. Not only that, but you must include bonuses, salaries and ancillary income.

This tool, which allows you to keep a record of exempt, untaxed income, and different reductions made throughout the year, will serve as a demonstration of your tax and tax processes as an employer.

To do this, in this article we will show you everything you need to know about the function and filling of your form 1887 for the current year.

Form 1887

The form 1887 It is a document that functions as an affidavit under the provisions of the Article 42 No. 1 of the Income Law.

This same law establishes what concerns salaries, bonuses, salaries and similar income (other than pensions or retirement). All this information corresponding to the year prior to the one in which the form is presented, respecting the Single Second Category Tax.

What is it for?

Serves as a statement made by any company that must pay salaries, impositions or second category taxes. However, those who make use of services such as domestic workers, gardeners and all types of household advisers are not included in these benefits.

Since in the form 1887 Salary increases, bonuses, overtime, etc. are included, it is an efficient and simple way to record and order the different payments made during the year to the employees of a company.

In this way, legal and natural persons who maintain a company can demonstrate, with the respective income information, all the payments made in the last year.

You can access a copy of the form 1887 entering in this link.

Instructions for filling out the 1887 form

The form 1887 or affidavit 1887 It must be filled out following the instructions below:

  1. To begin with, the type of declaration must be identified in the corresponding box. Depending on whether it is original or rectified, you must mark a x In the box.
  2. Enter your RUT and the folio of the primary declaration in case it is a rectification.
  3. Go to section A. In it you must identify the company or person that manages the withholding. Along with this information, you must fill in your RUT, name, postal address, fax number, email and telephone number with direct code.
  4. In the Section byou must fill in all the requested information.
  5. First, add the RUT of the person beneficiary of the rent (to whom the payment was made).
  6. Next, enter the annual amount of net income paid with salary concepts. Also accessory or complementary income related to the second category single tax. This is for workers whose day is full within the company.
  7. In addition to the above, you must include income of the same type that corresponds to those employees who do not work full time. To be part of this category, your value per hour exceed must be of 2,000 pesos.
  8. Remember that net income is gross income from which pension contributions and health services to which the employee is affiliated are discounted.
  9. Keep in mind that the full day is valued at 48 working hours per week.
  10. Now you must add the pertinent information to the salaries of sole proprietors and partners. This without taking into consideration if they are included in the category of second category single tax.
  11. In the next column or section, you must fill in the annual amount of this second category tax that has been withheld monthly on previous income. These data must be correctly updated.
  12. Next, you must give the annual amount of the largest tax withholdings that the employee has requested. As long as you agree with the Article No. 88 of the Income Law.
  13. mark with a x the periods that correspond to the rents and payments that you are going to inform in the form 1887.
  14. Fill in the folio number of the form issued to the employee to whom the rent was paid. If any of the employees falls under the RUT by default (No. 33.333.333-3)you must indicate the number of workers who report under said RUT.
  15. In the first box of the total table of annual amounts (without updating), you indicate the total number of the sum of the net monthly income. You must also include accessory or complementary income from the previous year.
  16. In the second box, on the other hand, you indicate the amount without updating corresponding to the payments month by month of the previous year.
  17. In the third box, you indicate the amount without updating that refers to the total of the single second category tax on accessory income withheld. Said information referring to the income of the previous year paid in the current year.
  18. Finally, you must enter the updated data of the annual total of taxable remunerations correctly paid during the corresponding year. That is, payments made without problems up to the December 31 of the year to declare.
  19. Finally, in the summary table of the affidavit or form 1887you must enter the totals of the sum of amounts shown in each of the sections.
  20. In the box for total cases reported, you must enter said information, so that it corresponds to the number of lines entered.
  21. Ready! You have finished with the affidavit of your form 1887.

Important information:
  • Income classified as compensation for tax purposes thereof is not included as income. Therefore, they should not be counted as qualified for the form 1887. On the contrary, they must form part of the certificates concerning such compensation.
  • In addition to the single second category tax, the single taxes referring to accessory or complementary payments will be recorded together with the corresponding income. These incomes are classified under the provisions of the Article No. 46 of the Income Law.

What is Art. 42 No. 1 of this Declaration?

The Article 42 No.1 of the Affidavit either Form 1887 establishes all the general rules, including theoretical concepts and limitations, of all income tax payment processes for those who have a company in their name.

You can read about the Income Law entering the electronic library National Congress pressing here and obtain the necessary information to develop your different rent payment processes.

submission deadline

The deadline for delivery and presentation of the form 1887 of the Declaration of Wages ends on the day March, 15th every year. This gives the possibility of registering each remuneration or payment made up to the end of the previous year and including the updated data of said transactions.

You can file this affidavit at any Internal Revenue Service office near your home. entering this service You can verify the jurisdiction and hours of attention that best suits you.

Salary Calculation

The calculation of the salary and the single second category tax corresponds to the employer, and it is the way he has to know how much he must pay the worker and the tax he must pay to the worker. Internal Revenue Service for said remuneration.

To calculate net salary (the payable to employees), first you have to calculate the gross salary. This is determined by obtaining the sum of the base salary with family, health allowances, and other types of taxable income.

Remember that it should never be less than the minimum wage, and you must fully pay variable remuneration, such as overtime, bonuses, commissions, etc.

Once the gross salary has been calculated, you must add the discounts for concepts of the National Health Fund waves Social Security Institutionsthe impositions of the Administrators of pension funds and any social benefits granted to each employee. This way you will obtain the result of the salary calculation of the workers of your company.

Form 1887 Generation Process

To generate the 1887 form you can follow the following sequence of steps:

  1. Enter in this link.
  2. Write your RUT and password.
  3. Enter the option «Reports» and select «Others».
  4. Enter the Salary Certificates.
  5. Provide the information of your company and the type of certificate.
  6. select your form 1887expanding in the year declared, the format and type of file, and the type of declaration (original or rectifying), as appropriate in your case.
  7. Ready! Finally you can accept and download your file, so that it is compatible with the format of the Internal Revenue Service and you can load it on the platform of said service.

The correct presentation of form 1887 It’s very important. Thanks to this statement, the Internal Revenue Service will be able to determine your rents paid and the deductions for partners and taxpayers to collect and pay the ISLR.

In this way, you demonstrate not only compliance with your responsibilities as an employer in front of the corresponding bodies, but it is easier to keep track of your income payments to workers in an updated manner.

And you Have you filled out your 1887 form yet?

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