Thread: Car Tax - buying through my company

Yeah you want options.... there is your 9 month waiting time.

Originally Posted by Thormaturge

I asked our auditor and he was going to "look it up" after which I have not seen him again.

Know that feeling.

Everything I can see is telling me about 1m a year basically.

however, rather tempted to save a million and get this.

I had my office manager look into this today and what she thinks is that there is an annual 20% deduction claimable against business profits, but it is capped at a value of ThB 1,million. Thus you can reduce business profits by a maximum of ThB 200,000 per annum.

Nice motor but like Tax says - silly money for what it is.

I can offer no solutions but throw out a question.

Are there any countries in ASEAN (which kicks off in 6 months) that have a low import duty? (something a little more palatable that 250% )

Could you then bring the car into LOS on foreign - long term plates?

Planting seeds, planting seeds

Originally Posted by Albert Shagnastier

Nice motor but like Tax says - silly money for what it is.

Not really. I live in Thailand. I can afford a nice car. I doesn't therefore matter what that car might cost in another country or what else I could buy with the money. It would be like me saying to a mate in Hong Kong "Don't buy that apartment. For that money in Cambodia, you could buy a town!" Well, his answer would be "But I do not live in Cambo. I live in HK".

Its all a matter of relativity.

Originally Posted by Thormaturge

I had my office manager look into this today and what she thinks is that there is an annual 20% deduction claimable against business profits, but it is capped at a value of ThB 1,million. Thus you can reduce business profits by a maximum of ThB 200,000 per annum.

Ah ha. So you can claim against up to 20% of a total of 1m no matter what the value of the car (if above 1m). But on the example from the RD website, it says 100%, up to 1m. Where did the 20% come from?

I would think leasing would be the way to go. Then isn't the leasing a deductible expense?

Originally Posted by pseudolus

Ah ha. So you can claim against up to 20% of a total of 1m no matter what the value of the car (if above 1m). But on the example from the RD website, it says 100%, up to 1m. Where did the 20% come from?

The Thai version of the RD website is far more use than the English version, and that is what my manager was reading.

I've told her to put what she has found to our auditor for his comments. Should be amusing. The info you originally found was from 2010 and there have been changes to the tax code since then.

Originally Posted by VocalNeal

I would think leasing would be the way to go. Then isn't the leasing a deductible expense?

That was what LD told me to do, but at 7.5% interest though. On the never never they do 2.5%. A hefty difference.

a thai friend of mine, runs a big business, bought a bmw 7 series a while back.

he managed to get the whole cost of it deducted as a genuine business expense.

he negotiated face to face with the tax officers over three or four interviews and convinced them that as the owner of the business he needed a high end car to demonstrate his status to suppliers and customers. turning up to a meeting in a camry or accord would have been demeaning to his status.

ive always thought these cut quite a dash

Originally Posted by taxexile

he negotiated face to face with the tax officers over three or four interviews and convinced them that as the owner of the business he needed a high end car to demonstrate his status to suppliers and customers. turning up to a meeting in a camry or accord would have been demeaning to his status.

Now this is the type of stuff I need to hear. How much did he bung them? I could argue exactly the same as long as I know how much should be in the envelope.

^
I don't recommend bribing tax officials. I've seen the results with some amusement.

Inspector A takes a bung.

A year later he/she is moved as part of regular rotation.

Inspector B arrives and either requires a further bung, or being squeaky clean, withdraws the "concession" retrospectively, charging interest along the way.

It's not as though you can ask for the bribe to be refunded......if it isn't written into the tax code don't try "persuading" tax officials to "help" you.

Sound point, Fishy.