Before 20 13, the company can sign a car rental agreement with employees and report it to the local subjective tax authorities for the record. According to the agreement, the expenses incurred during the use of private cars shall be borne by the enterprise. Then the name of the company that issued the relevant automobile fuel, tolls and repair fees can be reimbursed and deducted before tax. However, invoices issued in the name of individuals, such as insurance premium, vehicle and vessel use tax, shall not be deducted before tax. The signed agreement is only an agreement, and neither enterprises nor individuals need to pay stamp duty.
After 20 13, there are more and more illegal operations of private cars, and the state has issued regulations prohibiting private car operations. According to the Notice of Beijing Local Taxation Bureau on Personal Income Tax Related Business Policies (Beijing Local Taxation Bureau [2002] No.568), the expenses paid by enterprises for personal vehicles are regarded as the income paid by enterprises to individuals, and the tax is calculated according to the income from wages and salaries; However, if a lease contract can be provided, the tax can be calculated according to the income from property lease.