1, the company's name car purchase can be used as the company's assets, which helps to enhance the company's image;

2. It is possible to enjoy preferential tax policies for enterprises to buy cars;

3. Vehicle maintenance and use can be used as company cost for pre-tax deduction;

4, if the vehicle is mainly used for business activities, it can also improve work efficiency;

5, but the company needs a legal representative to apply for a loan to buy a car, which increases the complexity of the procedure;

6. If the vehicle is used for private purposes, it may cause tax audit;

7. Vehicle depreciation and maintenance costs will also increase the financial burden of the company over time.

Tax treatment of company's nominal car purchase;

1, purchase tax: the company needs to pay purchase tax when buying a car, and the tax rate is usually10% of the purchase price of the vehicle;

2. Value-added tax and surcharges: enterprises can deduct the corresponding VAT input tax when buying a car, and at the same time pay urban construction tax and education surcharge;

3. Vehicle depreciation: After buying a car, the vehicle can be depreciated as a fixed asset, and the depreciation expense can be deducted before tax to reduce the taxable income;

4. Business taxes and surcharges: In addition to value-added tax, enterprises also need to pay local education surcharges and water conservancy construction funds;

5. Vehicle and vessel use tax: Vehicles under the company's name are required to pay vehicle and vessel use tax every year, and the tax amount is determined according to the vehicle type and displacement.

To sum up, buying a car in the name of the company can enhance the corporate image, and may get tax incentives as a pre-tax deduction of costs and improve work efficiency, but at the same time it will also increase the complexity of loan procedures, face tax audit risks, and increase the depreciation and maintenance costs of vehicles over time, which will cause additional burdens to the company's finances.

Legal basis:

Company Law of the People's Republic of China

Article

The company is an enterprise legal person, has independent legal person property and enjoys legal person property rights. The company is liable for its debts with all its property.

Shareholders of a limited liability company shall be liable to the company to the extent of their subscribed capital contribution; Shareholders of a joint stock limited company shall be liable to the company to the extent of the shares subscribed by them.