| Summary: | Making decisions about procuring cars for use in business is something that entrepreneurs should have well planned as cars are one of the assets that almost every business needs to use in their operations. Some have them for sale and some have them for use, e.g. for executive positions, for freight or as a staff shuttle bus etc. In terms of taxation, different car types may have different tax burdens of both corporate income tax and value added tax. Therefore, entrepreneurs should study the effects of each tax and practice correctly to avoid problems that may occur from offenses under the tax law. Offences can cause an increase of unnecessary expenses to entrepreneurs in the form of fines, penalties or criminal fines which are prohibited expenses in the calculation of the net tax profit. This paper studies and collects information from academic papers, relevant laws and discusses tax rulings of the Revenue Department which relate to a passenger cars or cars with up to 10 seats. This paper will be of interest to entrepreneurs or those interested in order to apply for their business’s planning. The paper outlines the different practices between accounting and taxation for a passenger cars or cars with t up to 10 seats in terms of purchasing, hiring and leasing both used in operations and used as a business product. Moreover, it summarizes laws under the Excise Tariff Act newly issued for double cabs which affects the tax practice on such cars.
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