How to calculate tax on company-purchased cars

How to calculate tax on company-purchased cars

In recent years, as the demand for corporate vehicles has increased, more and more companies have chosen to purchase vehicles as fixed assets. However, the tax issues involved in corporate car purchases are relatively complex, including value-added tax, corporate income tax, vehicle purchase tax and other taxes. This article will analyze in detail the tax calculation method for company car purchases, and provide structured data to help companies reasonably plan tax costs.

1. Taxes involved in company car purchases

Company car purchases mainly involve the following taxes:

2. Specific tax calculation methods

1. VAT

For general taxpayer enterprises, the value-added tax paid when purchasing a car can be deducted as input tax. The calculation formula is:

Deductible input tax = car purchase price ÷ (1 + 13%) × 13%

For example, if you purchase a vehicle with a price of 500,000 yuan, the deductible input tax is: 50 ÷ 1.13 × 0.13 ≈ 57,500 yuan.

2. Vehicle purchase tax

The vehicle purchase tax is calculated based on the vehicle purchase price excluding VAT, and the tax rate is 10%. The calculation formula is:

Vehicle purchase tax = vehicle purchase price excluding tax × 10%

Taking the above-mentioned vehicle worth 500,000 yuan as an example, the purchase price before tax is 50 ÷ 1.13 ≈ 442,500 yuan, and the vehicle purchase tax is 44.25 × 10% = 44,250 yuan.

3. Corporate income tax

When a company purchases a car as a fixed asset, the cost can be spread through depreciation. The depreciation period is usually 4 years and the residual value rate is 5%. The formula for calculating annual depreciation is:

Annual depreciation amount = (purchase price excluding tax - residual value) ÷ depreciation life

Residual value = car purchase price excluding tax × 5% = 44.25 × 5% ≈ 22,100 yuan

Annual depreciation = (44.25 - 2.21) ÷ 4 ≈ 105,100 yuan

This part of the depreciation expense can be deducted before corporate income tax, thereby reducing the taxable income.

4. Vehicle and vessel tax

Vehicle and vessel tax is levied according to the vehicle displacement ladder. The specific tax rates are as follows:

3. Tax optimization suggestions

1.Choose the right time to buy a car: Based on the annual profit situation, enterprises can choose to purchase cars in years with higher profits and reduce taxable income through depreciation expenses.

2.Take advantage of tax incentives: Some regions have vehicle purchase tax reduction and exemption policies for new energy vehicles, and companies can give priority to purchasing new energy vehicles.

3.Standardize invoice management: Make sure to obtain a compliant special VAT invoice to deduct the input tax.

4.Consult a professional tax advisor: Due to possible adjustments to tax policies, it is recommended that companies consult professional tax advisors before purchasing a car to formulate the optimal tax plan.

4. Summary

The tax calculation for a company's car purchase involves multiple tax types, and factors such as value-added tax, vehicle purchase tax, corporate income tax, vehicle and vessel tax need to be comprehensively considered. Through reasonable planning, enterprises can effectively reduce tax costs. It is recommended that enterprises fully understand relevant tax policies before purchasing a car and make optimal decisions based on their own operating conditions.