For the United States, the agreement applies to Social Security taxes under the retirement, survivors and disability insurance (RSDHI) program (i.e., FICA taxes for employment and SECA taxes for self-employment, including the Medicare portion). Thus, if an individual is exempt from U.S. Social Security coverage under this agreement, neither the employee or employer share of the FICA tax nor the SECA tax, in the case of a self-employed person, has to be paid.

For Chile, the agreement applies to taxes that finance retirement, survivors and disability benefits under both the old and new systems as well as taxes for national health insurance and worker's compensation (work accident and occupational illness) programs. Consequently, if a worker is exempt from Chilean coverage as a result of the agreement, no contributions are due for these programs.