Lease Agreement. How to Settle: Nowadays, more and more people are choosing to work as taxi drivers, using their own vehicles for work. However, many may have doubts about how to settle income tax related to car rental. In this article, we discuss the basic issues connected with this topic and present different settlement methods. These rules apply both to taxi drivers who want to rent a vehicle from our fleet and to those who use their own passenger car.
For more information regarding the Avalon Logistics fleet, please visit the Vehicle Rental section.
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Lease Agreement and Income Tax
The lease agreement along with the service contract is a popular method of cooperation chosen by taxi drivers.
Income Tax from Car Lease
Income tax from leasing a car is an obligation that drivers must independently pay to the Tax Office. This is especially important from the moment of receiving the first income from the lease.
Forms of Lease Taxation
Drivers have the option to choose the form of lease taxation, which must be done no later than the 20th day of the following month after receiving the first payment. There are two main forms of car lease taxation: lump sum and taxation based on general rules.
- Lump Sum: This involves taxing the lease income with a fixed tax rate of 8.5%. It is a simpler form of taxation that may be advantageous for some drivers.
- Taxation based on General Rules: In this form of taxation, the tax rate is 18% of the lease income. It may be more advantageous for drivers who have high costs associated with running their business.
Possibility of Reducing the Tax Base
Taxi drivers who use a passenger car based on a rental agreement can reduce their taxable base by including expenses related to the use of the vehicle as costs, such as fuel, repairs, or the purchase of spare parts.
How to Settle?
Reporting the lease agreement and settling the tax can be done in person at the Tax Office, by mail, or by bank transfer with the appropriate description. There are also online tools available to facilitate the generation of micro tax bills. You can also take advantage of our video tutorial, which is available on the Youtube platform..
Summary
Leasing a car is a popular form of cooperation chosen by couriers and taxi drivers. There are several forms of lease taxation that can be chosen depending on individual needs and financial situations. Regardless of the chosen form of settlement, our qualified team is always available to help clarify any issues and doubts regarding income tax from leasing. Thanks to simple procedures and the support of our team, tax settlements become easier and more transparent for everyone.
BECOME A TAXI DRIVER
Work and earn right away!
