The Bureau
of Internal Revenue (BIR) has prescribed the following conditions in claiming
deduction for depreciation and other related expenses, as well as input taxes
on the purchase and maintenance of motor vehicles by taxpayers.
a. The
motor vehicle purchased by the taxpayer must be substantiated with official
receipts and other records indicating the price, motor vehicle identification
number, chassis number, etc.
b. The
taxpayer has to prove the direct connection of the motor vehicle to the
business.
c. Only
one vehicle for land transport, with value not exceeding P2.4 million, is
allowed for the use of an official or employee.
d. No
depreciation shall be allowed for yachts, helicopters, airplanes and/or
aircrafts, and land vehicles that exceed P2.4 million unless the taxpayer’s
main line of business is transport operations or lease of transport equipment
and the vehicles purchased are used in said operations.
The
depreciation allowance and maintenance expenses, and corresponding input taxes
on vehicles that do not meet the above conditions shall be disallowed for tax
purposes.
(Revenue Regulations No. 12-2012, October 12, 2012)
Tax
Brief – November 2012
Punongbayan
and Araullo
Walang komento:
Mag-post ng isang Komento