Except that the set up costs and yearly tax filing costs to set up a company would render this inefficient. You aren’t going to save a lot of money by registering with your company if you are doing it just for gas tax and annual registration deductions. However, if you already have a company, then it makes sense.[/quote]
Given that a ‘dai shu’ can set up a company in a couple of days for a few thousand, and given that a company can take a loss for three years and pay zero tax, it seems it is a loophole that people would exploit if they could. Imagine you are a three-car family. Imagine if you could have a ‘company car’ based on you owning a licenced noodle stall or momma-poppa-store. No one would pay tax on their private car.[/quote]
Unless you are the accountant yourself (dai shu), then you are still going to have to pay the cost for the accountant to keep up with the monthly and annual tax filing costs. That’s going to run NT$15,000 - 30,000 a year alone.
Its not a loophole - its a real business tax deduction. Its just not enough to make it worthwhile for every Joe to trouble with it. Incidentally, “paying a few thousand to set up a company in a couple of days” (without the actually required working capital - the common practice is to borrow it) is a violation of the Company Law. People do it at their own risk.
If you already have a business, it make sense to register it under your company.
Oh, one more point. The requirement to paint the vehicle numbers on your vehicle applies to “trucks and buses” but not cars (with the exception of taxi’s apparently). I don’t think your SUV will be deemed a “truck”.