Deductibility of costs in 2013 leasing and rental of cars and company vehicles
The choice between car buying, renting or leasing may be important for tax purposes. From the deductibility of costs by 20% to that of 70%, the company car use granted to the employee, involves various tax breaks, especially related to the unregulated use. We see all the information.
Companies or employers who wish to bring their company provided company cars or other vehicles, we pose the question of what is the best choice from the point of view of taxation between the option and the purchase of the leases, the leasing and rental. There are several deductibility of costs incurred by such means, in reference to the company's decision regarding the use, or if the medium is then assigned to employees for the exercise of business activities or even as a benefit.
The use may be relevant for tax purposes, for the purposes of deductibility of costs. That is, it is important to tax if the car such as is granted to the employee for business use only, or mixed use (business and personal), or even personal use only. In the latter case, it is called a concession to an employee of a fringe benefit, taxed as employment income, while in other cases there are various deductions.
The new deduction in 2013 for cars and vehicles. First of all it should be clarified that the law Fornero before the law and Stability 2013, then, have significantly reduced the percentage of deductibility of expenses to income tax (IRES, for companies). E 'was amended Article. 164 of the Tax Code governing limits the deduction of costs and other negative components for certain means of transport motor used in business, the arts and professions. The new measures are as follows:
20% deductibility of expenses and other negative components for passenger cars, the motor, mopeds and motorcycles that are not used exclusively as capital goods (in 2012 the percentage was twice, 40%);
Deductibility 70% of the deductible portion of the costs of vehicles in mixed use data to employees for most of the tax period (in 2012 the figure was 90%).
Article. 164 of the Tax Code, as amended, contains not only the indication of the percentages, but also the limits of deduction, ie a limit beyond which no account is taken of the amount of excess costs, ie, beyond which a figure is not calculated more deductibility. In the case of cars, for example ari is to 18,075.99 euro and thus the potential applied to 20% of this amount leads to a deduction of up to 3,615, € 20. But for more information see the study on the full and limited deductibility of vehicles.
Now take a closer look on the different options of purchase, ie the auto or leased vehicle, or the auto or vehicle rental. We see aspects related to the deductibility and limitations imposed specifically art. 164 for finance leases or operating.
Car leasing: the deductibility of costs in 2013 to 20%
The lease is a contract atypical financing, consisting of two separate contracts connected to each other: one sale and another lease of the property. There is a finance lease, which is a contract whereby the lessor (company leasgin) buy from a supplier of capital goods, in this case car or vehicle then for the company, for use in grant to a company ( conductor) for a fixed period and on payment of a periodic fee. The contract provides that the conductor, the company that benefits from the leased asset at the end of the period of lease, acquire ownership of the asset at a predetermined price by exercising the purchase option.
Having clarified that, the conductor, the company that benefits from the leased asset, allocates the same to its employees for the use that can be of various types: exclusive use of corporate or private purposes. The distinction use as we have said is relevant for tax purposes, especially for the purposes of the deductibility of the cost of the lease payments in the calculation of the direct taxes payable by the company.
Article. 164 of the Tax Code provides, in the part that relates to the means of transport deductibility limited, even a reference to the assets used under financial leasing (ie leasing). The deductibility limited, we still remember, was reduced after the reform Fornero and stability law to the extent of 20% (70% in the case of vehicles in mixed use data to employees for most of the tax period).
Article. 164 provides a direct reference to financial leases, ie that, for the purposes of calculating the deductibility of costs as much as 20%, without taking into account "the amount of the royalties in proportion to the cost of those vehicles that exceeds the limits specified, if such assets are used in finance lease. "
Financial leasing and deduction to 20% up to a maximum of 3615.20 euro. This means that the finance lease is deductible in the new rate of 20% (up to 2012 was equal to 40% of the deductible percentage) of the value of total annual installments, but for a maximum total of € 18,075.99, which is the 'entity as the limit deductibility of company cars. In essence, as for passenger cars owned, even those in leasing are deductible up to a maximum of 3615.20 euro (which is 20% of 18,075.99 euro).
Mixed use and deductibility of the lease at 70%. The same goes for finance leases involving real data in its promiscuous employees for most of the tax period. In this case, the deduction is the new level of 70% (in 2012 the percentage was 90%), always within the limit of € 18,076 in the value of total annual installments. It follows that the maximum amount of the deduction is equal to € 12,653.20 (€ 18,075.99 70%).
The duration of the lease agreements is important for the purposes of deductibility, since the cost tax deductible ragguagliare from the period of use of the asset during the year. Therefore be taken into account for this parameter to calculate the share of deductibility.
The limit of the coefficient ministry. Article. 102, paragraph 7 of the Tax Code provides for the deductibility of finance lease payments is permitted for a period not less than the period of amortization corresponding to the coefficient determined in accordance with paragraph 2 (of the same art. 102). This paragraph 2 states that the deduction is allowed to an extent greater than that resulting from the cost of the assets of the coefficients established by decree of the Minister of Economy and Finance published in the Official Gazette, be reduced by half for the first year. The coefficients are established for groups of homogeneous goods according to the normal period of decay and consumption in various productive sectors.
The deductible share of the leasing of competence therefore are determined by reference to the proportion of deductible expense (which would be € 18,075.99) and the purchase cost of the vehicle from the leasing company. So the percentage of deductibility of royalties is equal to the limit of cost recognized for tax divided by the cost of leasing companies, all obviously multiplied by 100.
Deductibility of the cost of rental car
Also as regards the rental, for tax purposes, on the application of the deduction, the reference point is always the art. 164 of the Tax Code, which governs all limits the deduction of costs. Recall that the lease, as we have already said, is a finance lease, which provides for the final redemption of the property and then the property from the company. The operating lease is a rental instead that does not involve the purchase of the property.
The application is always that of the deductibility limited, to the extent of 20% and in this case there are also limits to be taken into account. Article. 164 to point b) of paragraph 1, provides that for purposes of the deduction "does not take into account the amount of the costs of leasing and rental that exceeds the following measures:
3615.20 EUR for motor vehicles and motor homes (share deductibility of up to 20%, that is 723,04 €);
774.69 € for motorcycles (share deductibility of up to 20%, that is 159,94 €);
413,17 € for mopeds (share deductibility of up to 20%, that is 82,63 €). "
The limits described above, by which it is possible the costs incurred for the execution of contracts of hire, can be changed, even in this case on the basis of the index of consumer prices for the families of workers and employees the previous year's by decree of the Ministry of Economy and Finance, in consultation with the Minister of Industry.
Therefore in the case of a rental vehicle, the rental payments are recognized for tax purposes within the limits indicated. Consequently, it is possible to deduce, from 2013, more than 20% of the royalties paid € 3615.20. Until 2012, before the amendments approved by the reform of the Stability and Law Fornero 2013, the percentage was 40%.
In addition, similar to the finance lease (leasing), even for contracts for the lease or rental of a vehicle, the cost for tax purposes must be the same to the period of use of the asset during the year.
Example deductibility in the case of a rental car. Six months of renting a car at a cost of € 3,000. Although for the 180 days, the cost is € 3,000, being equal to the amount pertaining to maximum € 3615.20 multiplied by the period of use of the property during the year, you will have a share of responsibility equivalent to 3615.20 Euros divided 365 for 180 days, which is equal to half: 1782.84 €. On this figure, the calculation of the deductible amount is equal to 20%, and 356.57 Euros. In 2012, the percentage being fixed at 40%, the deductible portion was double, ie EUR 713.14. Based on this example, if the cost of one year lease (and 180 days) was € 6,000, the deductible portion would still be 20% of 3615.20 Euros, that is 723,04 €.
It 'clear and evident that, while the leased plane has a deductible limit of 20% of a maximum of EUR 18,075.99, exactly as in the case of purchase of car ownership or company vehicle, the car has a limit for deducting, in the case of passenger cars, equal to 20% of a maximum of 3615.20 euro. So a deductible limit to 20% much lower.
04/04/2013
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Translated via software
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Source:
Italian version of CercaGeometra.it