Doing boleta honorarios

Quick clarification first.

In the US they have whats called “self employment” income where you can be a sole proprietor and have zero structure in place and if you do a service for someone else and they pay you you report that income to the IRS on schedule c and pay taxes on it.
The person is a disregarded/passthrougg entity and only has an SSN
Then there are all the “structures” like llc, c and s corp, etc where in the case of c corp the corp declares the income and pays corp taxes there as well as being taxed again when paid in a salary or distribution to an owner or employee.

So now in Chile…is it correct that if someone is sitting outside el tit with blueberry muffins or masks for sale that they are reselling. They would be considered like a self employed person? Meaning the SII expects them to declare boleta de honorarios for their income and pay monthly social taxes on their monthly profit?

Is it a clear correlation that in chile
Boleta honorarios= self employment income declared
Electronic invoices= regular company income declared

Is that accurate?

I’m no expert, I just pay the frigging taxes, but Boletas de Honorarios are used for professional services by self-employed individuals. They include 10% tax.
But for all sales (and rentals) of goods, the boletas de venta which include 19% IVA are mandatory. The tax is declared and paid monthly to the SII. Same goes for services offered by companies, as opposed to individuals.

There are no categories of goods exempt for this tax, so to buy your expensive prescription medicine you have to pay tax on it as well. The “compassionate” government in action.

The recent explosion of street vendors shows how strictly informal cash sales are prosecuted.

Wow ok that really helps. So the people selling tissue at tollbooths are technically supposed to be paying SII 19% IVA on the goods (tissue) they sell on a monthly basis. But it is suspected many of these tissue and sopapilla and bad sushi sellers are not paying the taxes…aka the informal economy.

The tax on boletas has gone up to 11.5% and will continue increasing yearly to reach 17% if I remember correctly. In my case, I work for a business in the US, so I have to pay the 11.5% myself every month. They don’t retain it.

Excellent, they really know how to encourage enterprise here.
If the so-called Estallido Social hasn’t ruined your bricks-and-mortar business already, here’s the “compassionate” government putting the boot in to the smallest of pymes, the self-employed.

It only encourages the drift to the black economy, so it’s a self-defeating move.

I am actually going to look into incorporating when I have some time. It seems like it could be a better option financially.

It does look like that since I read that even though the coporate tax is usually higher here than the SE tax they have locked the rate at like 10% for the next 3 years due to germ/protest issues

It seems crazy they would lower the corporate tax but raise the SE tax