Overseas Faculty Manual - Taxes and Social
Contribution
TAXES AND SOCIAL CONTRIBUTION
The following are the taxes and social contributions that will be deducted
from your monthly payments:
1. Income Tax. The real income tax percentage for non-resident
foreign employees is 30%, but the school will sponsor 15% and will hold
15% of all earnings (Basic Salaries, Expatriate Allowance, Bonuses and
Coordinator’s pay) for income tax from your monthly salary from
August through December 2007.
Starting January 2008 you will be considered as any other Peruvian employee
for income tax deductions. This is approximately 14% of your salary, for
those whose annual salary is under $24,000. Those annual salaries over
this amount, will have other income tax brackets, and will be explained
on our first Business Office Orientation meeting in July. The income tax
rates are subject to changes in the Peruvian Income Tax Law.
2. Peruvian Pension Plan: The contributions to the Peruvian
Pension Plan are mandatory for all employees on payroll and currently equal 12.4 %(10% is deposited into the pension account in the name of the employee; 0.9% is deducted to pay the premium for the long-term disability coverage; and the balance is an administrative fee) The deductions
are made through payroll.
The pension funds are in local currency and available to the employee
at the termination of employment upon full completion of requirement for
eligibility. However the school offers the teachers the option to be reimburse these deductions
on a monthly basis if the teacher commits himself/herself to fulfill all
requirements to allow the school to recover these funds contributed in
his/her name. This decision has to be stated at your arrival in LiIma.
The benefit you will receive from this system is the disability and survival
insurance. This retirement plan includes a disability insurance, which
guarantees a disability pension in case of a physical, or mental disability
that reduces your ability to work. Upon the death of the employee, his
beneficiaries will be entitled to a pension.
|
