What expense category is Latam?
LATAM Airlines is the largest airline group in Latin America, offering domestic and international passenger and cargo flights across 24 countries. Business charges represent airfare for employee travel to or within Latin America.
LATAM Airlines Group was formed in 2012 through the merger of Brazil's TAM Linhas Aéreas and Chile's LAN Airlines, creating Latin America's dominant carrier. It serves 137+ passenger destinations across 24 countries and holds 37.8% domestic market share in Brazil. For businesses, LATAM charges on expense reports represent airfare — a fully deductible business travel cost. Despite being categorized as 'Rideshare & taxi,' LATAM is an international airline, not a ride-hailing service. Charges should be reclassified to 'Travel — Airfare' for proper tax treatment. Fares are per-transaction and vary significantly by route, class, and demand.
How businesses classify Latam
Tax details
- LATAM Airlines charges for business travel are 100% deductible — always record the traveler's name, itinerary, and business purpose when coding the expense.
- Reclassify LATAM charges from 'Rideshare & Taxi' to 'Travel — Airfare' in your accounting system; this distinction matters for both tax reporting and internal budget analysis.
- For mixed business/personal international trips on LATAM, only expenses allocable to business days are deductible — maintain a day-by-day itinerary as supporting documentation.
- Foreign currency transactions on LATAM tickets should be recorded in USD at the exchange rate on the transaction date; note any FX gains or losses at settlement.
- LATAM Pass miles earned on deductible business flights are generally not treated as taxable income at the time of earning but consult your tax advisor if redeemed for significant personal travel.
Business insights
Related expenses
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