An employee goes out for business and the boss says, "Use your own car and we'll reimburse you when you come back."During reimbursement, there may be potential implications for value-added tax, corporate income tax, and personal income tax.So, how should the "private car for business use" be handled during the reimbursement process?
员工出门谈业务，老板说“开自己的车去吧，回来给你报销”。报销时，由于对增值税、企业所得税、个人所得税都有可能造成影响，那么“私车公用”行为到底该如何处理？
Q：Is it reasonable to sign a car rental agreement with an employee for 0 rent?
A：No, it is unreasonable. There exists a tax risk of not being able to deduct vehicle expenses before tax reimbursement. According to the provisions of the Corporate Income Tax Law, only actual and reasonable expenses related to income generation by the company are allowed to be deducted before tax.
Q：与员工签订租车协议0元租金合不合理？
A：不合理。存在报销的车辆费用不得税前扣除的税务风险。因为按照企业所得税法的规定，只有企业实际发生的与取得收入有关的、合理的支出，才允许税前扣除。
Q：So what should I do?
A：1.When signing a car rental agreement, it is important to specify the necessity of renting the employee's vehicle and the purpose of the rental. This is to retain relevant evidence in order to demonstrate that future vehicle expenses are used for production and operation, and are directly related to income.
2.The employees who sign the agreement should be only a subset of the company's overall workforce. If it is signed with all employees, there is a risk of it being perceived as providing benefits.
Q：那应该怎么做呢？
A：1.签订租车协议时，写明租入员工车的必要性，以及租车的用途。目的在于留存相关的证据来说明，未来车辆发生的费用是用于生产经营，与收入相关的费用。
2.签订协议的员工应该仅仅只是公司的一部分员工。如果与所有员工签订，则有被视为发放福利的风险。
1
What are the advantages of signing a car rental agreement with an employee?
与员工签订租车协议的优势是什么？
Pre-tax deduction 税前扣除
Rental fees, fuel costs during the rental period, toll fees, and parking fees are eligible for pre-tax deduction.
However, personal expenses for the vehicle, such as car insurance and maintenance costs, cannot be deducted before tax.
租赁费、租赁期间的加油费、过路费、停车费可以税前扣除。
但应由个人承担的汽车费用，如车辆保险费、维修费不能税前扣除。
Pre-tax deduction certification 税前扣除凭证
The valid tax deduction certification for rental fees refers to an invoice issued by the individual through the tax authority. However, if the monthly rental fee is less than 500 yuan, a payment receipt can also be used. The payment receipt should include relevant information such as the name of the receiving unit, individual's name and ID number (or passport number), expenditure item, and amount received.
租赁费的合法扣税凭证指的是个人去税务机关代开的发票，但如果每月租赁费小于500元，也可采用收款凭证，收款凭证应载明收款单位名称、个人姓名及身份证号（或护照号）、支出项目、收款金额等相关信息。
Deductible input tax for fuel and toll expenses
加油费、过路费可以抵扣进项税
Rental fees, as they are obtained through ordinary invoices or receipts issued by individuals, are not eligible for input tax deduction. However, for subsequent fuel and toll expenses, if legitimate documentation is obtained, input tax can be deducted.
租赁费，由于取得的是普通发票或个人出具的收款凭证，进项税不允许抵扣。而后续的加油费、过路费，取得合法凭据是可以抵扣进项税的。
Rental income should pay personal income tax
租赁收入需缴纳个人所得税
If an individual receives rental income, the company is required to withhold and pay personal income tax on their behalf. The tax threshold is set at 800 yuan per month, with a tax rate of 20% applied.
个人取得了租赁收入，企业应该代扣代缴个人所得税，起征点为每月800元，适用税率20%。
2
What are the disadvantages of signing a car rental agreement with an employee?
与员工签订租车协议的劣势是什么？
1.For large companies in the real estate and construction industries, it can be cumbersome to sign multiple rental agreements with employees.
2.If the agreed rental fee exceeds 500 yuan, individuals need to go to the tax authorities to have an invoice issued, which can be inconvenient. If it exceeds 800 yuan, income tax needs to be deducted.
1.公司需要与员工签订租赁协议，如果是房地产、建筑业大型公司，签订协议多，比较麻烦；
2.约定的租赁费超过500元的，个人需要去税务局代开发票，不易操作。超过800元的，需要扣缴个税。
Q：How can tax planning for "private car for public use" be carried out?
Q：那么“私车公用”该如何税务筹划呢？
CASE案例
ABC company allows employees to drive their private vehicles for business negotiations outside the office, and all incurred expenses will be borne by ABC company.
ABC公司规定员工外出洽谈业务时可驾驶私人车辆，发生的各项费用由ABC公司承担。
There are three ways to handle the expenses
有以下三种费用的处理方式
Option 1 方案一
A monthly transportation allowance of 1000 yuan is included in the salary payment (most convenient for both the company and the employees).
1.Personal Income Tax: Both cash and reimbursement are treated as official vehicle subsidies and are subject to withholding and payment of income tax based on salary (which may result in potentially paying additional personal income tax).
2.Corporate Income Tax: The allowance disbursed with the salary falls under salary income and will be deducted based on actual expenses (no additional corporate income tax will be incurred).
3.Value-Added Tax: Not applicable.
每月随工资发放交通补贴1000元（对企业、对员工都是最方便的）。
1.个人所得税：现金和报销都视为公务用车补贴，按照工资薪金代扣代缴（可能会多缴个人所得税）；
2.企业所得税：随工资发放的补贴属于工资薪金，据实扣除（不会多缴企业所得税）；
3.增值税：不涉及。
Option 2 方案二
Monthly reimbursement based on actual expenses (provides a closer reflection of the actual costs).
1.Personal Income Tax: Both cash and reimbursement are considered as official vehicle subsidies and subject to withholding and payment of income tax based on salary (may result in potentially paying additional personal income tax).
2.Corporate Income Tax: The expenses reimbursed for the vehicle fall under welfare expenses and are deductible within the 14% limit of the total salary amount. However, there is a risk of increasing the company's taxable profit before tax (may result in potentially paying additional corporate income tax).
3.Value-Added Tax: It is considered collective welfare or personal consumption, and input tax deduction is not allowed (may result in potentially paying additional value-added tax).
费用发票每月实报实销（根据每月的实际花销报销，更贴近实际）。
1.个人所得税：现金和报销都视为公务用车补贴，按照工资薪金代扣代缴（可能会多缴个人所得税）；
2.企业所得税：报销车辆的费用属于福利费支出，在工资总额的14%限额内扣除，面临公司税前利润被调增的风险（可能会多缴企业所得税）；
3.增值税：属于集体福利或个人消费，进项税不允许抵扣（可能会多缴增值税）。
Option 3 方案三
Sign a car rental agreement with the employee, with a monthly rent of 500 yuan. The agreement should state the legitimate reasons for the company's car rental and allow for reimbursement of fuel expenses, toll fees, etc., incurred during business trips.
1.Personal Income Tax: Rental income obtained by employees that does not exceed 800 yuan is exempt from personal income tax.
2.Corporate Income Tax: The rental fee can be used as a pre-tax deduction with payment and internal vouchers as supporting documents, and it will be deducted based on the actual expenses. Additionally, fuel expenses, toll fees, and other related reasonable expenditures incurred during business trips are generally deductible (no additional corporate income tax will be incurred).
3.Value-Added Tax: If eligible invoices are obtained, input tax can be deducted (no additional value-added tax will be incurred).
与员工签订租车协议，租金500元/月，协议中说明企业租车的正当理由，并约定车辆因公务发生的加油费、过路费等可在企业报销。
1.个人所得税：员工取得的财产租赁所得，未超过800元，无需缴纳个人所得税；
2.企业所得税：租赁费可以收款凭证及内部凭证作为税前扣除凭证，据实扣除；并且因公务发生的加油费、过路费等一般属于企业与收入相关的合理支出，可据实扣除（都不会多缴企业所得税）；
3.增值税：若取得符合规定的发票，进项税可抵扣（不会多缴增值税）。
Based on the above analysis, Option 3 does not require personal income tax payment, allows for actual deduction of cost expenses, poses no risk of increasing corporate income tax, and allows for input tax deduction when eligible invoices are obtained. It is the optimal choice
综上分析，方案三无需缴纳个税，成本费用可据实扣除，企业所得税无调增的风险，且取得发票符合条件的进项税允许抵扣，是最优选择。
3
Three reminders for using private vehicles for official purposes
私车公用的三个提醒
Signing an agreement 要签订协议
The company should sign a written agreement with employees who use their private vehicles for official purposes, clearly defining the vehicle's usage conditions and cost-sharing methods. Additionally, stamp duty may be required for contract signing.
公司与私车员工签订用车书面协议，约定明确车辆的使用情况及费用分摊方式。当然，签订合同需要相应缴纳印花税。
Establishing a system 要建立制度
The company must establish an official vehicle usage system, maintain proper records of vehicle usage, differentiate between personal expenses and company expenses, and require employees to provide vehicle rental invoices to the company.
公司必须建立公务用车制度，做好车辆使用记录，分清个人消费和企业费用，员工应向公司提供汽车租赁发票。
Standardizing accounting要规范核算
For tax-deductible expenses related to the use of private vehicles for official purposes, the company should standardize financial accounting practices, ensuring that relevant expenses are not mixed up and that the expenses that should be borne by individual employees are not transferred to the company and deducted before taxation.
对于私车公用费用税前扣除范围，企业应规范财务核算，相关费用不能相互混淆，不得将应由员工个人承担的费用改由公司承担，并在税前扣除。
In short, don't let minor issues in habits create tax troubles for yourself and the company.
总之别让习惯的小问题，给自己和公司找上税务麻烦。
Author 作者 | Alex
