Any benefit in buying a new car in my company's name?

[angryfarang]

My current car is ten years old now and needs to be replaced.

Is there any benefit in buying a new car in my company's name and declaring it as an asset?

[robblok]

Not sure about the laws against private use of a company car in Thailand, but otherwise you can offset the costs of the car (depreciation) and fuel, maintenance, insurance against the profits in your company. That would safe taxes, you might even claim back VAT on the car if there are no laws against that.

I know in other countries there are rules about cars as company assets so there is no tax benefit to have one on the company name if its used a lot for personal business instead of company business.

So if others tell you there are no such rules and your company makes a profit its a good idea.

Sorry that I could not give a 100% conclusive reply.

[angryfarang]

Interesting. I actually use my current car about 90% for work. My job is support work which involves driving to different customer sites each day.

If I didn't need to carry equipment with me I wouldn't have one - I'd just use a bike.

[robblok]

Just let someone with some more insight in Thai fiscal law look into this. As I said in some countries there are limitations and exceptions and rules for business cars. But if there are none it could save you a lot of money tax wise (assuming your company pays tax).

I only know the correct Dutch tax laws on cars and there its hard to deduct a company car unless you have a valid ride registration and under 500 km private use. I am not sure if Thailand has restrictions if not even the vat on the car is deductible. So include that to fuel, insurance, maintenance and depreciation and it would help you to pay less tax.

Certainly something worth looking into if you want to buy a new car.

[angryfarang]

I have a fully registered VAT company. I'll check with my accountant.

I guess the other question, is it possible to get a business loan from the bank to buy the car? Or am I best buying it cash.

[The Big Mango]

Hi angry farang.

I have a couple of cars registered to the company.

Yes you can claim the vat

Yes you can claim depreciation each year

If you opt for diesal you can also claim the vat ( not on petrol for some reason )

But you can claim expence for both options.

Buisiness loan , yes possible.

Hope that helps ;-)

[Ace of Pop]

You need to turnover 1.8 Mill P.A. to register first. + A Registered Office and Branch No all properly registered too.

[NickJ]

I think insurance and reg costs are more. My lawyer advised not to......maybe more paperwork when time to sell. I remember asking twice about it and didnt do it.

[The Big Mango]

Your lawyer gave you bad advice for certain.

Why the hell wpuld you not register in the company name ?

Your insurance cost remains the same the only thing that increases is the road tax and thats approx 2 thousand baht more a year.

There is no precursor for personal use within a company owned car.

More paperwork , well yes a little bit absolutley nothing major.

When you come to sell you simply declare the value of the car as income to the company and pay the vat on the amount you sold the car for.

With a ltd company just ask tour accountant.

They will detail the procedure , it is just as easy as buying it individually , except of course providing the relevant company paperwork , registration , tax id , tax returns etc.

All very painless and straightforward

Edited August 15, 2015 by The Big Mango