Received a query on whether to buy car under personal or company & the pros and cons.
Buying a vehicle under your company would allow the company to declare the vehicle as a depreciating asset & deduct from company income statement. This is good for the company.
However, if you drive the vehicle home, it would be considered as a benefit in kind thus pushing your personal gross income up. You would also need to show that the vehicle is required for use as part of the company’s business. Additionally, the road tax fees are higher for a company car.
Would recommend that you check with your tax advisor on company savings versus effect on your personal income tax.
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