Transport
Presumed or actual income: the right decision depending on how your fleet grows.
The presumed income tax regime greatly simplifies the accounting for a transport company, but only as long as you stay within its limits—and leaving it is almost always permanent. We are C&C Contadores Auditores (Cortés Carrasco brand), a boutique firm founded in 2012—we help you assess whether it's better to remain under presumed income tax or switch to actual income tax, especially in years of significant fleet investment, and to properly leverage depreciation and tax credits for your vehicles.
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What can we do for you?
- Tax regime assessment: presumed income (Art. 34 LIR) vs. actual income
- Fleet depreciation (normal, accelerated or instant depending on your size)
- Recovery of VAT tax credit on the purchase of trucks and cargo vehicles
- Monthly accounting and tax compliance under effective income
- Supporting documentation for fuel, toll, and maintenance expenses
Related services: Tax compliance · Accounting
Presumed income: simple as long as you don't grow beyond its limit
The presumed income tax regime for freight or passenger transport is available only to individuals, sole proprietorships (EIRL), communities, and partnerships or corporations formed exclusively by individuals, with annual business income not exceeding 5,000 UF (Unidades de Fomento, a Chilean unit of account). Under this regime, your net taxable income is not calculated based on your actual income and expenses, but rather presumed at 10% (a percentage point) of the tax value of your vehicles—the same valuation used for vehicle registration. This is advantageous as long as your actual profit margin is less than this presumed 10% and you prefer to avoid the administrative burden of full accounting. However, it ceases to be advantageous in years of significant investment in a new fleet, because there is no actual depreciation to deduct from a presumed base. Switching to actual income tax is mandatory if you exceed the income threshold or if the permitted corporate structure changes. Once the change is made, you cannot revert to presumed income tax unless you cease your transport activity for five consecutive tax years or more (Article 34 No. 4 of the Chilean Income Tax Law).
| Presumed income | Effective income | |
|---|---|---|
| Who is eligible? | Natural persons, EIRL, communities and partnerships or corporations formed exclusively by natural persons | Any taxpayer |
| Income cap for the business | 5,000.00 UF annual | No limit |
| How is the taxable base determined? | 10% of the current market value of each vehicle, set by SII resolution as of January 1 of each year | Actual income less actual documented expenses |
| Effect of investing in fleet | None: the presumption does not allow for deductions of depreciation or expenses | Depreciation reduces the taxable base |
| Return to the previous regime | — | Those who leave the presumed income bracket cannot return, unless they cease carrying out the transport activity. 5 consecutive exercises or more |
Under effective rental income, the fleet depreciates faster than many believe
If your company pays taxes on actual income, a truck has a normal useful life of 7 years according to the SII (Chilean Internal Revenue Service) table—but if it's new or imported directly by your company, you can apply accelerated depreciation and reduce it to one-third of that period, significantly lowering the taxable base in the first few years after purchase. If your average business income for the three previous fiscal years is less than 100,000 UF (Unidades de Fomento, a Chilean unit of account), Article 31 No. 5 bis allows you to depreciate one-tenth of the normal useful life with a minimum of one year—for a truck, that's one year. Instant and full depreciation is available, but it comes through a different channel: the Pro Pyme regime of Article 14 DN° 3, and only applies to assets that have already been paid for. Furthermore, unlike privately owned cars, trucks and vehicles used for cargo transport are not restricted from using the VAT tax credit on their purchase—it's fully recovered without special authorization. A well-planned fleet renewal, with the correct tax regime, can have a greater cash flow effect than many transport companies take advantage of.
| Depreciation regime | Term applicable to a truck | Requirement | Legislation |
|---|---|---|---|
| Normal | 7 years | None additional | SII Resolution No. 43 of 2002 |
| Accelerated | 2 years (one third of the normal useful life, disregarding decimals) | New item acquired in the country or imported, with a normal useful life of 3 years or more | LIR, art. 31 No. 5 |
| One tenth of the useful life | 1 year (one-tenth of 7 years, with a minimum of 1 year) | Average income from the business activity less than 100,000.00 UF in the previous 3 fiscal years | LIR, art. 31 No. 5 bis |
| Instant and complete | The same buying exercise | Being in the Pro Pyme regime and that the vehicle is paid off, because the base is determined by cash flow | LIR, art. 14 DN° 3 and SII Circular No. 62 of 2020 |
Which vehicles qualify for VAT tax credit
The general rule in Article 23, No. 1 of Decree Law 825 entitles the company to a tax credit for all assets used in its business operations. The exception in No. 4 is often overlooked: automobiles, station wagons, and similar vehicles are excluded, along with their fuel, lubricants, spare parts, and repair costs. For a transportation company, this distinction translates into tangible financial benefits, as it separates the truck—which qualifies for the full credit—from the light vehicle used for supervision or personnel transport. It is worthwhile to define the classification of each vehicle at the time of purchase, not during an audit.
| Vehicle or expense | Does it entitle you to a VAT tax credit? | Legislation |
|---|---|---|
| Truck, tractor truck, trailer and cargo semi-trailer | Yes, completely, without special authorization | DL 825, art. 23 No. 1 |
| Car, station wagon and similar | No, unless the company's usual business is its sale or lease | DL 825, art. 23 No. 4 |
| Fuels, lubricants, spare parts and repairs for those cars | NoThe restriction extends to its maintenance. | DL 825, art. 23 No. 4 |
| Van or truck intended for the business | Yes, as long as the vehicle is not classified as an automobile or similar; it's advisable to check the rating before using the credit. | DL 825, art. 23 No. 1 and No. 4 |
Frequently asked questions
Which companies can benefit from presumed income in transport?
Individuals, sole proprietorships (EIRL), communities, and partnerships or corporations formed exclusively by individuals, with annual business income not exceeding 5,000 UF. If your company has partners that are legal entities (another company as a partner), it is automatically excluded from this regime and must pay taxes on actual income, a point worth reviewing before adding a new partner.
How is the tax calculated under presumed income?
The tax is levied on the 10% tax value of your vehicles, not on your actual income or profit. This means that two companies with the same fleet pay the same tax even if they have very different operating results—an advantage if your actual profit margin is high, a disadvantage if it's low.
When is it advantageous for me to switch to rent-to-own?
This is especially important in years of heavy investment in new fleets, because under presumed income you cannot deduct that investment from your taxable income. It's also worth considering whether your operating expenses (fuel, maintenance, personnel) have grown significantly more than your income, because under actual income tax, those actual expenses do reduce your taxable income.
Can the change from presumed to actual income be reversed?
In practice, no: those who leave the presumed income tax regime cannot return unless they cease their transportation activities for five consecutive tax years or more (Article 34 No. 4 of the Income Tax Law). Therefore, we recommend simulating the effect of both regimes using your company's actual data—not just a general estimate—before submitting the change to the Chilean Internal Revenue Service (SII).
Can I get a VAT refund on the purchase of a truck?
Yes, absolutely; commercial vehicles are not subject to the tax credit restriction that applies to privately owned cars. This recovery applies whether you purchase the vehicle with cash or financing, and it is independent of whether your company is subject to presumed or actual income for VAT purposes, although under presumed income there is no actual depreciation to apply to that same vehicle.
What happens if my transport company also leases vehicles to third parties?
Your presumed income tax qualification may be affected depending on how the transaction is structured; we evaluate each case individually. Leasing vehicles to third parties may be considered a separate activity from transportation itself, which affects the calculation of your business income for the purposes of the 5,000 UF presumed income limit.
What coverage do I need for fuel and maintenance expenses?
Invoices with the vehicle's license plate number identified and proportional to the mileage or vehicle usage log are a common focus of review by the Chilean Internal Revenue Service (SII). Maintaining a mileage log for each vehicle, in addition to invoices, is what allows you to demonstrate that the expense actually corresponds to the operation of that vehicle and not to mixed or personal use.
Do they serve freight and passenger transport companies equally?
Yes, both profiles can access presumed income under the same general rules, and we help them assess which regime is more suitable in each case. Additional obligations (such as passenger transport permits or specific insurance) vary depending on the type of transport, so the tax analysis is complemented by a review of your compliance with sector-specific regulations.
Sources
Income and depreciation regime. Content revised on 01-09-2026.
- LIR, art. 34 N° 1 — requirements of presumed income and limit of 5,000.00 UF for land transport of cargo and passengers.
- LIR, art. 34 No. 1 — legal presumption of the 10% of the current market value of the vehicle, set by SII resolution on January 1.
- LIR, art. 34 No. 4 — exit from the regime and rule of 5 consecutive years to be able to rejoin.
- LIR, art. 31 No. 5 — normal and accelerated depreciation to one third of the useful life.
- LIR, art. 31 No. 5 bis — depreciation in one tenth of the useful life, with a minimum of 1 year, for average incomes less than 100,000.00 UF.
- LIR, art. 14 DN° 3 and Circular SII N° 62 of 2020 — instant and full depreciation of the Pro Pyme regime, conditioned on the asset being paid for.
- SII Resolution No. 43 of 2002 — useful life table: general purpose trucks, 7 years normal and 2 years accelerated.
VAT and monthly compliance.
- DL No. 825 of 1974, art. 23 No. 1 — right to tax credit for goods intended for business.
- DL No. 825 of 1974, art. 23 No. 4 — exclusion of tax credit for automobiles, station wagons and similar vehicles, and for their fuels, lubricants and spare parts.
- Monthly VAT and PPM return: you can estimate the effect with our Form 29 simulator.
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