A very common topic, that we have to explain to our customers is the taxation of vehicles in Chile.
In Chile, unlike in Europe, a company cannot buy any car. Vehicles recognized as company cars are trucks, pick ups and jeeps, unless the company's object is car rental.
Therefore, if a company buys a vehicle which does not fall under the aforementioned list, the Chilean IRS will not recognized it as a company's vehicle and it will be seeing as a company's investment, which can be depreciated within 7 years.
The VAT paid for that car cannot be recovered as well as the expenses related to the car.
If this car is assigned to some CEO and he uses it...