What percentage of deductibility for cars and company vehicles from 2013?
From full to the deductibility limited in new measures by 20% and 70% for vehicles used for private purposes, the change from 2013 limits the deduction of costs for company cars and other means of transport. Are the effects of the reductions of the law Fornero and Stability. We see all the information, including the lease or rental cars.
Come important changes regarding the deductibility of costs of cars or other vehicles business. The law n. 92 of 2012, better known as the Reform Fornero, and the Law of Stability of 2013 have significantly reduced the percentage of deduction of costs incurred and other negative components for vehicles. And this has an important impact on the tax burden of businesses, artists and professionals. The deductibility allows the reduction of the income tax, personal income tax and IRES.
The personal income tax is calculated on the income of natural persons, and is applied at rates to income brackets, the IRES is instead the tax on corporate income tax. In both cases, the deduction reduces the tax bill, both for professionals and businesses. The tax regulations concerning the deductibility of costs related to company cars or other vehicles is contained in Articles 102 and 164 of the Consolidated Law on Income Tax.
There are different percentages of deductibility for businesses, from the deductibility full to the deductibility limited, and various uses of the well, which result in different applications of the same deductibility, promiscuous use companys exclusive use by the employee. We address all aspects relating to the deductibility of costs of company vehicles, with a particular look at the car business.
The news on the deductibility from 2013
The reductions to the deductibility of the reform of the law of 2012 and Fornero Stability 2013. Among the reform Fornero on the labor market in June of 2012 and the law of stability of December 2012, the deductibility of the car business has been significantly decreased. Were reduced significantly the percentage of deductibility of the messengers of locomotion used by the companies or from professionals.
The law n. 92 of 28 June 2012, ie the reform Fornero, and then subsequently the law n. 228 of 24 December 2012 Stability Law, from 2013 onwards, have modified the following articles of the Tax Code:
- Art. 164 paragraph 1, letter b) of the Tax Code, carrying from 40% to 27.5%, and then by the law of Stability to 20% the share of deductibility of expenses and other negative components for passenger cars, the motor, mopeds and motorcycles that are not used exclusively as capital goods;
- B-bis) always art. 164 paragraph 1, reducing from 90% to 70% of the deductible portion of the costs of vehicles in mixed use data to employees for most of the tax period. These are known as fringe benefits.
Let us now see what are the vehicles of which the grant and in what cases it is the full deductibility, the deductibility reduced to 70% and 20%.
Buy Direct and full deductibility
If your company or professional provide direct purchase, for the purpose of income tax is applied art. 164 of the Tax Code, which governs in fact the "Limits to deduction of expenses and other negative components related to certain means of motor transport, which are used in business, the arts and professions."
It is of purchases of passenger cars in motor homes, mopeds, motorcycles and, in the case of goods which are intended to be used solely as capital goods under the actual activity of the company, also touring aircraft, ships, boats pleasure. In these latter cases the letter A) of paragraph 1 of art. 164 allows full deductibility for the full amount of the purchase price. Just as it is full in the case of purchase of vehicles intended for public use.
Article. 164 of the Tax Code provides that "The costs and other negative components related to motor vehicles referred to in this article, used in business, the arts and professions, for the purpose of determining the relative income are deductible only if they fall within one of the types described in subsequent letters a), b) and b-bis) ". Then list all cases of deductibility.
The letter a) shows the deduction for the full amount, as we have seen, are:
- The purchase of aircraft from tourism, ships and pleasure boats, cars and caravans, motorcycles and mopeds intended to be used solely as capital goods under the actual activity of the enterprise;
- Vehicles intended for public use (eg taxis).
Are also subject to full deductibility of costs also vehicles in mixed use data to employees for most of the tax period.
For the full deductibility is necessary to the requirement of exclusive use as well instrumental in the company's. The tax authorities have clarified that for the purpose of the exact identification of vehicles used exclusively as capital goods, it should be taken as a reference to the fact that its activities without those vehicles can not be exercised. For example, companies making cars for rental business of the spread. In the case of vehicles used for public use, however, there is no problem in finding, as such use is recognized by an act adopted by a government.
The deductibility limited after the reform Fornero and the Law of Stability in 2013
The letters b) and b-bis) of paragraph 1 of art. 164 of the Tax Code governing all cases of limited deductibility of costs (ie not to the extent of 100% whole) have been heavily modified by Law Fornero first and Stability Law 2013, then. There have been significant downsizing in the percentages, while remained unchanged spending limits deductible.
The deductibility in force until 2012. Before the intervention of the reform of labor and Stability Law, the deductibility was 40% for expenses and other negative components for passenger cars, the motor, mopeds and motorcycles, which are not only used as capital goods. As for the activities of agency and representation of trade, nothing has changed, since even before the fixed percentage amount equal to 80%. With regard to the deductibility of so-called fringe benefits, ie vehicles data in its promiscuous employees for most of the tax period, however, the percentage was 90%.
Deductibility reduced from 40 to 20%. The letter b), as amended by the Law of Stability, 2013, states that the deduction "to the extent of 20% for passenger cars and motor caravans, referred to in the above paragraphs of Article 54 of Legislative Decree n. 285 of 1992, mopeds and motorcycles whose use is different from that described in point a), number 1). " These are the cars, motor homes, motorcycles and mopeds that are not used exclusively as capital goods.
So if in 2012 the percentage was 40%, and this percentage was in force until the end of December (because the changes of the reform Fornero concern the following year), from 2013 this percentage drops to 20%.
The confirmation of the elevation of the deduction to 80%. This percentage is higher than 20 per cent to 80 per cent for the vehicles used by persons engaged in business as an agent or representative of trade.
Deductibility reduced 90-70% for mixed use in vehicles. The deductible portion of costs relating to vehicle data for mixed use to the employees, for the most part of the tax period, pursuant to art. 164 paragraph 1, letter b-bis), increased from 90% to 70% as from 1 January 2013. This change was introduced by the reform Fornero and has not been amended by the Law of Stability.
This deduction, considerably wider (+50% compared to 20% for deducting business use or non-promiscuous), is assigned precisely only if the destination of the vehicle for both business and personal purposes of the employee. The promiscuous use and application of the deduction to 70% is allowed only if it falls within the parameters provided by the tax authorities.
The limits of deductible expense. The Income Tax Code, always art. 164, also indicates what are the limits beyond the deductibility is not allowed. Does not take into account the part of the acquisition cost that exceeds:
- € 18,075.99 for motor vehicles and motor homes;
- 25,822.84 EUR for vehicles used by agents or representatives of trade;
- 4.131,66 € for motorcycles;
- EUR 2,065.83 for mopeds.
Therefore, it is possible to make use of deductible expenses, which reduce the total income on which the rates apply importer income, only to the extent of the purchase cost and the new percentages. Based on the limits and the percentage of deduction of 2012 and 2013 we have the following maximum deductible expenses:
- Motor vehicles and motor caravan in 2013 burden deductible maximum of € 3615.20 (20% of EUR 18,075.99). In 2012, this limit was twice, ie € 7,230.40 (40%);
- Motorcycles, maximum deductible expense in 2013 of € 826.33 (20% of 4.131,66 euro). In 2012, this limit was twice, ie € 1,652.66 (40%);
- Mopeds, maximum deductible expense in 2013 of € 413.66 (€ 2,065.83 20%). In 2012, this limit was twice, ie € 826.33 (40%);
These substantial reductions in the percentages lead to a cost increase of IRES tax of approximately 723 euro, taking into account the 20% of not more than 3,615 Euros deductible.
Examples deductibility 2012 and 2013. If a company buys a car worth € 30,000, taking into account the limitations imposed by the Tax Code, in the case of 18,075.99 euro, the deduction calculated in two years will be equal to 40% in 2012, ie EUR 7,230.40, while in 2013 due to the reduction, in this case to 20%, the deduction will be equal to one half, ie 3615.20 euro. In the event that the vehicle had been paid 10,000 € for example, this figure being less than the limit, 40% and 20% is calculated based on 10,000 Euros, then the share of deductibility in 2012 would have amounted to € 4,000, while in 2013 shall be EUR 2,000.
It also stops the norm according to which, for the purpose of determining the payments due for the tax period of initial application, needs to undertake, as set in the previous period, that which would result from the application of the new rules under consideration, according to provisions of art. 4, paragraph 73 of Law 92 of 2012 (Reform Fornero).
The conditions imposed by the Tax Code. In the case of exercise of trades and professions in an individual, the deduction is allowed, provided the extent of 40% in 2012 and 20% from 2013, limited to one vehicle. If the activity is carried out by simple societies and associations, the deduction is only allowed for a vehicle to any member or associate.
For costs and other negative components incurred for the use of vehicles not covered by art. 164 of the Tax Code, the deduction is allowed provided is met, for the owners of the business income, the general principle laid down by Article. 109, paragraph 5 of the Income Tax Code, for which the costs and other negative components are deductible if and to the extent that they relate to activities or goods from which they derive revenue or other income that contribute to the formation of income.
Rules of the road and classification of vehicles subject to the tax deductibility
The Income Tax Act (ITCA), DPR n. 917 of 1986, Articles 102 and 104, indicates which is the fiscal discipline of company cars, always in reference to direct taxes. Article. 164 refers to the Highway Code, in so far as it refers to cars and motorhomes, then the provisions of Legislative Decree no. 285 of 1992.
Therefore, the direct reference to rules of the Highway Code in the Tax Code concerns only these types of vehicles. But of course, are the recipients of tax breaks, the deductibility also other means used in the company. To summarize, we see the concept of a vehicle, classifications and definitions of the Highway Code.
The concept vehicle is offered by. 46 of the Highway Code, "vehicles defined as all machines of any kind, on the roads guided by man. Not fall within the definition of the vehicle, the use of machines for children, the characteristics of which do not exceed the limits established by regulations, and the use of machines for Disabled, which fall under medical aids in accordance with the Community provisions in force, although enslaved from engine " .
Article. 47 of Legislative Decree 285 of 1992 instead provides the classification of vehicles, which we quote:
a) vehicles arms;
b) animal-drawn vehicles;
c) cycles;
d) slides;
e) mopeds;
f) personal;
g) vehicles;
h) trolleybuses;
i) trailers;
l) agricultural machinery;
m) machines;
n) vehicles with atypical features.
Article. 54 defines instead the various types of cars, article invoked in part in TUIR: "1. Motor vehicles are motor vehicles with at least four wheels, excluding motor vehicles, and are distinguished:
a) vehicles: Vehicles used for the carriage of passengers, comprising more than nine seats, including the driver;
b) bus: Vehicles used for the transport of persons equipped with more than nine seats including the driver;
c) motor vehicles for mixed transport: vehicles having a total mass at full load not exceeding 3.5 to 4.5 t if electrically driven or battery, intended for the transport of people and things and capable of holding more than nine seats including the driver's seat;
d) truck: Vehicles used for the transport of goods and people involved in the use or transport of the things themselves;
e) tractor: Vehicles used exclusively to tow trailers or semi-trailers;
f) special transport vehicles: vehicles for the transport of certain things or people in special conditions, characterized by being permanently fitted with special equipment for this purpose;
g) vehicles Special purpose vehicles characterized by being permanently fitted with special equipment and mainly for transport. On such vehicles is allowed to transport personnel and materials connected with the operating cycle of the equipment and people and things related to the intended use of the equipment itself;
h) trucks: combination of vehicles consisting of two separate units, attached, one of which motive. For the sole purpose of applying Article. 61, paragraphs 1 and 2, shall constitute a single unit lorries permanently characterized by special equipment for the transport of certain things in the Regulation. In any case, if you exceed the maximum of art. 61, the vehicle or conveyance shall be considered exceptional;
i) articulated: combinations of vehicles consisting of a tractor and semi-trailer;
l) articulated buses: bus consisting of two rigid sections connected together by an articulated section. On these types of vehicle the passenger compartments in each of the two rigid sections are connected. The articulated section shall permit the free movement of travelers between the rigid sections. The connection and disconnection of the two sections shall be possible only in the workshop;
m) motor vehicles are having a special bodywork and equipped permanently to be used for transporting and housing a maximum of seven people, including the driver;
n) work vehicles: vehicles or combinations of vehicles equipped with special equipment for loading and transportation of materials to use or activity is construction, road, excavation and mining or similar materials that complement, while driving, the production cycle of specific materials for building construction.
Company vehicles used by employees
These distinctions and definitions of motor vehicles according to the Highway Code are useful to focus on which of these facilities is permitted as a deduction full (which we have seen is related to the allocation of capital goods), but also the various hypotheses of limited deductibility of 20% or 70%, the latter being connected to the allocation of vehicle allowed for private purposes.
The exclusive use corporate for tax purposes it is possible for all media (and therefore the application of the 20% deduction), while mixed use, ie the mix of destination of the medium between the use for business purposes and use for personal purposes by the employee, is attributed to motor vehicles, motor homes, motorcycles and mopeds. And mixed use allows a deduction of 70%. Then there is also the exclusive personal use of the asset held by the company to the employee, is the case of fringe benefits, ie for example the car granted to employees as a benefit for him and his family. In these three different cases (exclusive use corporate, mixed-use, exclusive use of staff), the rules on deductibility is different.
Deductibility in the leasing and rental
Among the hypotheses available to businesses, or professionals, or in general of employers, there is the possibility to opt for the generic alternative to a company car or other vehicle intended for business purposes. And 'possible to resort to the lease or lease or rental. The two cases are different: the lease is an agreement atypical financing consists of two separate contracts, one in the lease and the other of sale, as the property may be redeemed at the end of the lease, while the car is a lease operation that does not involve the purchase of the property, but only the fees incurred. Consequently, the tax treatment in respect of the deduction by art. 164 of the Tax Code, even in its new formulation Fornero after the amendments of the Law and the Law of Stability, 2013, is different, especially within the limits of deduction, which in this case is limited to 20%, unless the good is not intended the employee mixed-use.
30/03/2013
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Translated via software
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Source:
Italian version of CercaGeometra.it