Effective Dates: 10/05/2022 - Present Previous | Next

TN 51 (10-22)

RS 02001.935 Self-Employment Rule under the Chilean Agreement

A. INTRODUCTION

Generally, a work activity that is considered to be self-employment under U.S. Social Security law is also considered to be self-employment under Chilean law. In certain cases however, a person may be engaged in an activity that is considered self-employment by one country and employment by the other country. For example, under U.S. law, ordained ministers and members of the board of directors of a corporation are considered self-employed. Under Chilean law they are generally considered employees. The following subsections explain how coverage is determined in each situation.

 

B. POLICY

1. Activity is Self-Employment in Both Countries

When the work activity is considered self-employment by both countries, the worker will be covered only by the country of residency.

2. Activity is Self-Employment in Only One Country

If the activity is considered self-employment under the laws of one country and employment under the laws of the other country, the worker's coverage is determined as follows:

  • •

    A worker who is a resident of the country that considers the activity to be self-employment will be covered under the laws of that country.

  • •

    A worker who is not a resident of the country that considers the activity to be self-employment will have coverage determined under the agreement rules on employment. Thus, the worker will be covered under the laws of the country where the work is performed unless the individual meets one of the exceptions explained in RS 02001.915 - RS 02001.930.

    EXAMPLE: A U.S. citizen is residing and working in Chile as a member of the Board of Directors of a corporation. Under U.S. law, a person is considered self-employed while Chilean law considers the person an employee of the corporation. Since the person does not reside in the country that considers the work activity to be self-employment, the coverage will be determined using the rules for employment.

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0302001935
RS 02001.935 - Self-Employment Rule under the Chilean Agreement - 10/05/2022
Batch run: 10/05/2022
Rev:10/05/2022