1, the company's name car purchase can be used as the company's assets, which will help to enhance the company's image;
2. It is possible to enjoy preferential tax policies for enterprise car purchase;
3. Vehicle maintenance and use can be deducted before tax as the company's cost;
4, if the vehicle is mainly used for business activities, it can also improve work efficiency;
5. However, the company needs a legal representative to apply for a loan to buy a car, which increases the complexity of the procedure;
6. If the vehicle is used for private purposes, it may cause tax inspection;
7. Vehicle depreciation and maintenance costs will also increase the financial burden of the company over time.
Tax treatment of company's nominal car purchase;
1, purchase tax: the company needs to pay purchase tax when buying a car, and the tax rate is usually10% of the purchase price of the vehicle;
2. Value-added tax and surcharges: enterprises can deduct the corresponding VAT input tax when buying a car, and pay urban construction tax and education surcharge at the same time;
3. Vehicle depreciation: after buying a car, the vehicle can be depreciated as a fixed asset, and the depreciation expenses can be deducted before tax, reducing the taxable income;
4. Business tax and surcharges: In addition to value-added tax, enterprises also need to pay local education surcharges and water conservancy construction funds;
5. Vehicle and vessel use tax: Vehicles under the company's name have to pay vehicle and vessel use tax every year, and the tax amount is determined according to the vehicle type and displacement.
To sum up, buying a car in the name of the company can enhance the corporate image, and may get tax incentives as pre-tax deduction of costs, which will improve work efficiency, but at the same time, it will also increase the complexity of loan procedures and face the risk of tax audit, which will increase the depreciation and maintenance costs of vehicles over time and cause additional burdens to the company's finances.
Legal basis:
Company Law of the People's Republic of China
essay
The company is an enterprise legal person, with independent legal person property and legal person property rights. The company is liable for its debts with all its property.
Shareholders of a limited liability company shall be liable to the company to the extent of their subscribed capital contribution; Shareholders of a joint stock limited company shall be liable to the company to the extent of the shares subscribed by them.