Cars And Taxes In Chile - Tax - Mondaq Chile - Mondaq Business Briefing - Books and Journals - VLEX 592090374

Cars And Taxes In Chile

Author:Brokering Abogados
Profession:Brokering Abogados

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...

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