Putting My Car In The Company's Name...

[Jim's_a_Thai_Fox]

Hi,

I have just bought a 2nd hand car for 870k Baht cash. I am a director (24.5%) of a very small company here in Thailand, with another farang (24.5%) and 5 thais (who have 51% between them).

I was wondering is there any benefit to the company (or me to that matter) if I was to register the car under the company name and not my personal name and address? the car would be registered as a company asset... I'd imagine that could be useful should we ever apply for loans at a commercial bank?

I know that annual Road Tax and initial name/address registration costs are doubled for registering under a company name.

The company has made no revenue as yet and all income has been in the form of 'director loans' (i.e. money me and my partners have put in so far) - needless to say, no one is drawing a salary. Of course, we all hope that this situation changes in the near future.

I have asked my Thai accountant about about potential benefits, but nothing back from her yet

Any thoughts fellow TVers?

Cheers

James

[MrSnrang]

It can be used as a business expense and in turn, a write-off. And keep those expressway receipts as you can use them as a business expense and ask for a receipt at gas stations. Let you accountant deal with this stuff.

Edited February 12, 2007 by MrSnrang

[soundman]

Hi,

I have just bought a 2nd hand car for 870k Baht cash. I am a director (24.5%) of a very small company here in Thailand, with another farang (24.5%) and 5 thais (who have 51% between them).

I was wondering is there any benefit to the company (or me to that matter) if I was to register the car under the company name and not my personal name and address? the car would be registered as a company asset... I'd imagine that could be useful should we ever apply for loans at a commercial bank?

I know that annual Road Tax and initial name/address registration costs are doubled for registering under a company name.

The company has made no revenue as yet and all income has been in the form of 'director loans' (i.e. money me and my partners have put in so far) - needless to say, no one is drawing a salary. Of course, we all hope that this situation changes in the near future.

I have asked my Thai accountant about about potential benefits, but nothing back from her yet

Any thoughts fellow TVers?

Cheers

James

Just make sure you can prove the car is actually being used for the business, or is a necessaty for the business. I tried to register a Range Rover in my wife's manufacturing business & the audit office would not allow it.

Also beware the tax office when you come to sell the vehicle. You may have bought it for 800K & 2 years down the track try to sell it for 80K. The tax office will have none of this, unless you can prove it was a POS when you sold it (eg Staff denting all the panels etc.) They will allow you what they consider "fair market value" for the vehicle & if you have allready depreciated past that figure the tax office will demand profit on sale, even if you legitimately sold the car for a lower price than their "fair market value".

Same applies for land and real estate....

Cheers,

Soundman.

[soundman]

& I forget to mention:

If you bought the car privately, you probably will not be charged VAT, therefore no input credit for your company, whereas, when you sell it, you will have to collect VAT, & pay accordingly to the tax office.

Soundman.