Car - Take Over Monthly Installments

[buddy]

Hi everyone,

I shall need a car for my work.

I already have a Thai Ltd company with work permit and have found a suitable car.

Problem is the car is currently being paid for by the Thai owner by monthy installments to the dealer showroom (Honda) where the car was originally purchased.

Question?

If the car finance agreement is transfered either to my name (Farang) or to the Thai Ltd company name which would be the best of the 2 options to claim back the monthly payments, company or personal?

Would the car payments be offset against my Thai tax liabilities?

All assuming that I can put the payments through the books of coarse?

[Soutpeel]

There is no reason as far as I am aware why you cant put the car on the company books, however the finance agreement cant be "transferrred" as such, you get your own finance agreement with a company to buy the car which would be used to pay off the current owners obligations under the exisitng finance agreement, and you pay your finance company

As a company asset the car could be offset tax, but in a personal capacity, dont believe you can claim a company car under your personal tax (maybe wrong on this)

[AliasJohn]

Hi..I have first hand experience with this as I have just gone through the process 2 months ago. I have a Thai company same as you and I have the loan in my company name. You can claim the repayments, as a expense

against the company providing you have a "original tax invoice" from the finance company. You can claim the petrol but must put the rego number on the tax invoice. You can claim

the deposit that you paid. If the car is a pick up, truck or a vehicle with more than 10 seats, then you can claim the 7% vat..

Good luck!

Cheers

[asiawatcher]

Hi..I have first hand experience with this as I have just gone through the process 2 months ago. I have a Thai company same as you and I have the loan in my company name. You can claim the repayments, as a expense

against the company providing you have a "original tax invoice" from the finance company. You can claim the petrol but must put the rego number on the tax invoice. You can claim

the deposit that you paid. If the car is a pick up, truck or a vehicle with more than 10 seats, then you can claim the 7% vat..

Good luck!

Cheers

Perhaps - with a few variations. If the vehicle is leased the payment is 100% tax deductible. If the vehicle is under a purchase agreement only (asset purchase) the interest is tax deductible not the full payment, but with the addition of depreciation based on its type of usage. If in the company name the company gets the tax writeoff not the individual. Also - if the vehicle forms part of the package (salary plus car etc) then the additional proportional income is added to your salary which makes you more 'taxable' as an individual. You need to consult your accountant on this as company cars in the hands of the employees here also means only 5/7ths (5 day week) of fuel etc is deductible. There are a lot of weird rules here so check it out before you get nailed.

[buddy]

Many thanks to those have contributed to my topic.

I have just found out that the finance arrangement for the Thai purchaser is with Kasikorn bank.

What affect will this have on my interest on taking over the payments of the car through my Thai Ltd company?

[Soutpeel]

Many thanks to those have contributed to my topic.

I have just found out that the finance arrangement for the Thai purchaser is with Kasikorn bank.

What affect will this have on my interest on taking over the payments of the car through my Thai Ltd company?

Shouldnt do..in fact you may get a lower interest rate as it is a company buying the car, you really would to talk to the company who is going to finance this for you, it does need to be K-bank

I may be splitting hairs here, but you keep referring to taking over the payments, you actually are purchasing/re-financing the car at the, unless of course you are thinking of leaving the car in the current owners name and giving him the money every month to pay the car...?....if you are I would strongly suggest not going this route