Chile Forum

Under U.S. law, self-employed workers are covered by U.S. Social Security if they are U.S. citizens or U.S. resident aliens. The agreement does not have any effect on the coverage of self-employed U.S. residents—they remain covered by U.S. Social Security. Since self-employment is covered under the Chilean system on a voluntary basis, self-employed U.S. residents (including Chilean citizens) do not need any documentation to show they are exempt from contributions under the Chilean system.
The agreement exempts self-employed U.S. citizens who reside in Chile from U.S. Social Security coverage. As a result, if you are a self-employed U.S. citizen and reside in Chile, you do not have to pay U.S. Social Security taxes on your self-employment income. To document your exemption from the payment of U.S. Social Security self-employment taxes (SECA), you need to get a certificate of coverage from Chile’s Superintendency of Pension Fund Administrators (the new pension system) at the address in "Chilean certificates" section above.

Be sure to provide the following information in your request:

Full name (including paternal and maternal surnames);
Date and place of birth;
Citizenship;
Country of permanent residence;
U.S. Social Security number, Chilean Registration Number for Social Insurance and the National Identification Number (RUT)––NOTE: If you have not been issued one of these numbers, you may omit it.
Nature of self-employment activity;
Dates the activity was or will be performed; and
Name and address of your trade or business in both countries.
You should attach a photocopy of the certificate to your U.S. income tax return each year as proof of the exemption.

Andres wrote:So, I reckon you should create a non-US company which "delivers" services which generates google ad income, and have your wife become an employee of that company. Depending upon shareholding of the company (between you and your wife), it also gives you the opportunity to decide who receives what amount of income. Also, you can accumulate assets within the company, often at a lower tax rate than if paid to an individual.

admin wrote:O.k. got it now:

http://www.irs.gov/businesses/small/int ... 36,00.html

From the social security web site dealing exactly with Chile:
http://www.socialsecurity.gov/internati ... chile.html

Under U.S. law, self-employed workers are covered by U.S. Social Security if they are U.S. citizens or U.S. resident aliens. The agreement does not have any effect on the coverage of self-employed U.S. residents—they remain covered by U.S. Social Security. Since self-employment is covered under the Chilean system on a voluntary basis, self-employed U.S. residents (including Chilean citizens) do not need any documentation to show they are exempt from contributions under the Chilean system.
The agreement exempts self-employed U.S. citizens who reside in Chile from U.S. Social Security coverage. As a result, if you are a self-employed U.S. citizen and reside in Chile, you do not have to pay U.S. Social Security taxes on your self-employment income. To document your exemption from the payment of U.S. Social Security self-employment taxes (SECA), you need to get a certificate of coverage from Chile’s Superintendency of Pension Fund Administrators (the new pension system) at the address in "Chilean certificates" section above.