What is extreme zone in SAP PY-CL - Chile?

SAP Term: extreme zone

• Component: PY-CL

• Component Name: Chile

• Description: A special area in which taxpayers are eligible for tax benefits. According to an legislation, taxpayers located in so-called extreme zones are eligible for tax benefits. The goal is to stimulate the development of economic activities in those areas, for example, the provinces of Arica and Parinacota.

Smart SAP Assistant

• Key Concepts: 
  The extreme zone component of SAP PY-CL Chile is a feature that allows employers to pay employees in remote areas of Chile a higher salary than the standard minimum wage. This is done to compensate for the higher cost of living in these areas. The extreme zone component also allows employers to pay employees in remote areas a lower salary than the standard minimum wage, if they choose to do so. 
  
  How to use it: 
  In order to use the extreme zone component of SAP PY-CL Chile, employers must first identify which areas are considered “extreme zones”. This can be done by consulting the Chilean government’s official list of extreme zones. Once employers have identified the extreme zones, they can then adjust their payroll accordingly. 
  
  Tips & Tricks: 
  When using the extreme zone component of SAP PY-CL Chile, employers should be aware that there are certain restrictions on how much they can pay employees in extreme zones. For example, employers cannot pay employees in extreme zones more than 25% above the standard minimum wage. Additionally, employers should also be aware that there are certain tax implications associated with paying employees in extreme zones. 
  
  Related Information: 
  For more information about the extreme zone component of SAP PY-CL Chile, employers should consult the official documentation provided by SAP. Additionally, employers may also want to consult with a qualified accountant or tax advisor to ensure that they are complying with all applicable laws and regulations when using this feature.