Chile Tax Agency Clarifies Tax Treatment of Employee Travel Expenses

The Chilean Internal Revenue Service April 22 issued Letter No. 1363, clarifying the tax treatment of employee travel expenses. The taxpayer sought clarification as to whether employers could make monthly payments to employees within the metropolitan region for travel expenses. The letter clarified that: 1) payments for travel expenses may be allowed to employees whether they were from the metropolitan or any other region; 2) voluntary payments of mobilization allowances, food, and per diem as an expense may be deducted when they were paid or credited to the employees’ account; 3) employees must travel to places other than the locality ...