In October 2021, the Electronic Compensation Book (hereinafter, “LRE”) became a mandatory monthly record on the platform enabled by the Labor Directorate (hereinafter, “DT”) for all employers with five or more workers, replacing the obligation to carry said book in stamped foliated sheets.
The LRE is a registry that, in addition to being mandated by the Labor Code, fulfills the role of endorsing the expense for remunerations that employers have for the purposes of their tax declaration before the Internal Revenue Service (hereinafter, “SII”). Due to the foregoing, the DT works together with the SII to update the LRE declaration, in order to contain all the data that is of interest to it for its respective control functions.
Due to the above, during the last week of January of this year, the DT sent an informative email to the different employers registered in the MiDT portal, in accordance with the provisions of articles 508 and 515 of the Labor Code, informing modifications to the LRE from January 2022.
Said modifications consist of the incorporation of new concepts to be reported separately, by worker, if applicable:
1. Withholding middle class loan 2020 (Law 21,252): it will allow to identify for each worker and period the withholding that was made by application of Law 21,252 (State Loan with 0% rate 2020). In this way, the SII will be able to know those advance payments of the loan requested by the worker in 2020 and that must begin to be paid from the income operation of tax year 2022. Code 3166 is created to inform this concept in the LRE.
2. DL 889 extreme zone reduction: it will allow the reduction by extreme zones to be identified by worker and period, according to the limits and requirements indicated by DL 889, applied for purposes of determining the Second Category Single Tax of the same remuneration. Code 3167 is created to inform this concept in the LRE.
Although these codes are incorporated as of January 2022, it will be possible to declare them retroactively in those cases where it is pertinent. This would be the case, for example, of those workers to whom 3% withholdings have been made, mandated by Law 21,252, from their remuneration from September 2021 onwards.
Given the modifications, both the Supplement and the LRE User Manual were updated in their January 2022 version.
