Company Car Plan

[1D4LV]

up ko lang to..

on the part of the company.. if the car is registered under compay name.. does this falls under Fringe Benefit?? so the company pays more tax for this? or is this considered as an expense and is tax deductible?

its depreciation of assets.... expense, tax deductible.

[dreamur]

Company pays FBT (47%) and claim the expense as tax deductible.

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[Erlin]

Here's our company's car plan:

-500k; 12%vat shouldered by the company
60% c/o company; 40% c/o employee salary deductible in 4 years
-you can choose any brand/make you like, provided you pay excess amount in cash
-after 4 years car gets transferred to you, just pay fully depreciated book value (minimal + registration transfer cost)

hi can you share your gas allowance scheme, I need lang for my study we're comparing our existing car policy. thanks.

[_Qwerty_]

in my previous company it's 10T per month, included na dito gas / PMS / tires

hi can you share your gas allowance scheme, I need lang for my study we're comparing our existing car policy. thanks.

[papi smith]

A company I was with before, reimburses gas, etc if using your own car on a per kilometer basis, purchase price (assumed/capped), depreciation, maintenance, insurance, gas all factored in.

Another one I know, gives a measly P10/km, while the worst I encountered was simply reimbursement of actual gas receipt, which of course is based also on mileage/distance. So pag na accident ka or nasabugan ka ng gulong (which happened to me at nlex) expense mo na yun

[Sleepcare]

All expenses paid.

On your own yung gas expense unless official business yung lalakarin which is reimbursible.

[Erlin]

in my previous company it's 10T per month, included na dito gas / PMS / tires

May I know which co for study purposes.

[Erlin]

A company I was with before, reimburses gas, etc if using your own car on a per kilometer basis, purchase price (assumed/capped), depreciation, maintenance, insurance, gas all factored in. - how is per/ km? also may I know the co name. can send privately.

Another one I know, gives a measly P10/km, while the worst I encountered was simply reimbursement of actual gas receipt, which of course is based also on mileage/distance. So pag na accident ka or nasabugan ka ng gulong (which happened to me at nlex) expense mo na yun

Ours is 8xkilo, no one wants to use their car.

[dr. d]

Ours is 8xkilo, no one wants to use their car.

8 kesos per km? that's almost break-even.
what happens if they don't use their car?

[Egan101]

I know one company where they give their senior officers (managers and above) a free car and a monthly gas allowance of 150L. Cost of car is dependent on rank, of course. PMS, registration, and insurance is also covered by the company. Employee can opt to buy the car after 5 years. Employee is also entitled a new car plan after 5 years.

In some other companies, employee and company share on the cost of the car plus PMS/gas expenses are reimbursable up to a certain amount. For VP or C-level positions, some companies can give out car plans worth up to 3M or more.

[Erlin]

8 kesos per km? that's almost break-even.
what happens if they don't use their car?

They don't, they just use company vehicle that's why we need to come up with new policy re on how they will use more of their own car. This company is just starting.

[papi smith]

Ours is 8xkilo, no one wants to use their car.

Actually, schemes like these discourage the employee from going to the field to the point that critical customer visits are sacrificed and their HR does not realize that.

But not in your case pala since you are just starting.

[Sarsi]

It depends on the nature of business.

For companies who use car as a tool for doing business, it could be a "car plan" or just simply "company car"

When i was still working...

Company P (American MNC) - company car only, company pays for everything, fleetcard for gasoline with 200 liters limit (not peso value), PMS budget should be requested in advance, so i don't have to do out of oocket expense.

All repairs outside the PMS, say accidents, still company's expense if within your area of work. If you will use it for personal out of town, it should be approved by the immediate superior to use the fleetcard [emoji16]

Company W (Distributor of an American MNC)-option of company car or car plan. 5 years, 50/50 split if car plan, or option to buy if company car.

All expenses related to work, chargeable to company, if for personal use, there is a computation for fuel expense, we call it POCC (Personal operation of company car), a certain amount per kilometer will be charged to our personal account, we list our odometer reading everyday, start of day and end of day.

No fleetcard, actual fuel expense, with revolving fund, to be reconciled weekly, if you don't, you have to spend your iwn money until you have submitted your expense report. I am guilty of this, i do my recon every month.

Company M (American Telco company) - used my personal car, actual fuel expense, tolls, parking, plus 12 pesos per kilometer fee for official business trips. This was around year 2007

Company A (British MNC) - started with use of personal car, same with company M, but 25 pesos per kilometer. I was able to negotiate but normal rate for others is 18 pesos.

When the car (plan) arrived, 90/10 split, company and employee respectively, 5 years. Depends on the position, but not measured in peso value, rather based on car displacement, similar to Company Pr.

Company W (Japanese MNC) - car plan, 70/30, but car was under leasing company, if we opted to buy the car, we have to deal with the leasing bank.



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[papi smith]

Company M - in 2007, Company S was giving 14/km but no more actual fuel expense

Company A - 18-25/km, what year was this?

[Sarsi]

Company M - in 2007, Company S was giving 14/km but no more actual fuel expense

Company A - 18-25/km, what year was this?

Year 2008 - 2009


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[papi smith]

Year 2008 - 2009


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Maybe for a mid size car or SUV?

[Sarsi]

Maybe for a mid size car or SUV?

Nope. The company did not set a standard car size for the rates. I am using a 1.5L sedan car then.

Whatever the employee uses, he or she will be paid 18 pesos per kilometer.

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[_Qwerty_]

PAL no company cars for Pilots but 300L gas allowance a month must be matched by fuel receipts.

[CVT]

Company X - we give you money per month (FBT paid for by the company) - all in for your choice of car-toll-insurance-gasoline-pm-etc.... or pocket the money...

We are not in the business of car fleets...

[Egan101]

Company X - we give you money per month (FBT paid for by the company) - all in for your choice of car-toll-insurance-gasoline-pm-etc.... or pocket the money...

We are not in the business of car fleets...

This is much better. At least, you will not be stuck with bad rides chosen for you by the company. Hahahaha