This policy explains how business expenses are reimbursed in Chile, including mileage, documentation standards, tax treatment, and per diems.
Travel & Mileage
Mileage
No government‑mandated mileage rate under Chilean tax law.
Employers may set an internal reasonable per‑km rate that reflects actual business costs (fuel, maintenance, depreciation).
Documentation is essential: mileage must be supported by a log (date, route, distance, business purpose).
Risk: Mileage reimbursements without adequate logs/receipts may be considered taxable income to the employee.
Parking, Tolls & Road Charges
Reimbursable as separate items with receipts.
Traffic fines (speeding, illegal parking, etc.) are not reimbursable.
Travel Reasonableness
No formal statutory caps on days or amounts.
The employer must demonstrate that travel is strictly business‑related and the costs are reasonable.
Excessive or non‑justified reimbursements may be treated as taxable salary by the SII.
Transportation & Lodging Rules
Air / Train / Bus / Taxis / Ride‑hailing (Uber, Cabify, Didi):
Reimbursable when business‑related.
Electronic receipts from ride‑hailing apps are valid.
Taxi receipts are accepted; if unavailable, the expense may become taxable.
Rental Cars:
Allowed when business‑necessary.
Must include:
Rental contract
Fiscal invoice (Factura or Boleta)
Fuel receipts (if employee pays)
Tolls/parking receipts (if applicable)
Accommodation:
Hotel stays reimbursable with hotel Factura/Boleta and trip justification (dates, destination, purpose).
Invoicing & Documentation (Tax‑Free Eligibility)
To be treated as non‑taxable reimbursement, each expense should have a Boleta or Factura (tax invoice) that shows:
Vendor’s RUT (tax ID)
Date
Amount with IVA (VAT) breakdown
Description of goods/services
Business purpose/justification
Travel dates & itinerary (if applicable)
Company Entity (for invoicing):
Horizons Global Technology Chile SpA
There is no official “no‑receipt” threshold in Chile. Reimbursement without proper proof of payment risks taxability for the employee.
When a receipt isn’t available (exception handling)
For parking lots or settings where electronic tickets/receipts aren’t issued, the following are accepted:
Bank/card statement as proof, or
Internal declaration (only if the policy expressly allows and includes full details: date, amount, vendor/location, purpose).
Use sparingly; repeated “no‑receipt” claims can be challenged by SII.
Reimbursement & Taxability
Generally Non‑Taxable (with valid documentation)
Transportation (airfare, train, bus, taxi, ride‑hailing)
Accommodation (hotel invoices required)
Meals during business trips
Mileage (when supported by logs; rate reasonable)
Tolls, parking (with receipts)
Work‑related supplies/equipment
Company‑related phone/internet (business portion)
Client meals (within reasonable limits and with business purpose)
Per Diems (Viáticos)
Chile allows per diems, but they must be:
Reasonable,
Within government guidance levels,
Linked to travel outside the normal workplace, and
Substantiated (travel order/itinerary and business purpose).
Excessive or unsubstantiated per diems may be treated as taxable salary.
Typical reference ranges (not statutory caps):
Domestic travel: ~CLP 20,000 – 35,000 per day
International travel: varies by destination; commonly USD 60–120/day for meals & incidentals
Avoid double reimbursement: If per diem is paid for meals, do not also reimburse the same meals by receipt.
Entertainment, Gifts & Team Events
Client entertainment: Allowed and non‑taxable if business‑related and documented (attendees, purpose, receipt).
Gifts:
Employee gifts are generally taxable income unless symbolic/low value per policy.
Client gifts should be reasonable, business‑related, and receipted.
Team gatherings: Typically non‑taxable if organized/paid directly by the employer; employee reimbursements require documentation to remain non‑taxable.
Personal/Wellness Expenses
Not tax‑free: Medical, gym, yoga, therapy, swimming, general wellness, unless provided under a legal fringe benefit or a formal company program that treats them as taxable.
VAT (IVA) in Chile
19% IVA applies to most goods/services in Chile.
VAT applies to the vendor invoice (Factura/Boleta), not to the reimbursement transaction itself.
Ensure invoices are tax‑compliant to support correct accounting and potential VAT treatment.
Employee Checklist (Quick Reference)
Before travel
Get pre‑approval if required
Confirm what your per diem covers (no double claims)
Know the internal mileage rate and log requirements
During travel
Collect Boleta/Factura for every expense
For taxis & ride‑hailing, save the digital receipt
Note business purpose and attendees (client meals/entertainment)
Keep parking/toll receipts separate from mileage
After travel
Submit mileage log (date, route, km, purpose)
Attach itinerary/boarding passes if requested
File your claim within company deadlines