1. The car you bought can be recorded as a fixed asset, and depreciation expense is accrued every month. If the car value is less than 5 million yuan, you can also choose pre-tax deduction, and you can pay less corporate income tax when the income tax is settled.
2. Other expenses generated by this car are
Can be included in the company's costs, such as refueling, maintenance, insurance, tolls, etc.
3. For cars purchased in the name of the company, the commercial insurance rate will be lower than that of individuals, which can reduce the insurance cost.
4. If the company is a general taxpayer, the car purchase invoice received can be deducted according to the VAT rate of 13%.
Disadvantages:
1. When the company goes bankrupt or there is an economic dispute, the car is a part of the debt-paying assets, which is risky.
2. If the company sells the vehicle again, it still needs to pay VAT.
3. If the vehicle has a traffic accident, it shall be jointly and severally liable to the company.
In the event of a traffic accident, the compensation may be higher than that of the individual.