Lease Agreement. How to Settle: In today’s world, more and more people are opting to work as couriers, using their vehicles to deliver goods. One of the most commonly chosen methods of cooperation is a lease agreement. However, many individuals may have doubts regarding the settlement of income tax from leasing a car. In this article, we will discuss the basic issues related to this topic and present various forms of settlements. The same rules apply to couriers and taxi drivers who want to rent a vehicle from our fleet.
For more information regarding the Avalon Logistics Group fleet, please visit the Vehicle Rental section.
Lease Agreement and Income Tax
The lease agreement along with the service contract is a popular method of cooperation chosen by couriers and taxi drivers. It is important to be aware of the obligation to report the lease agreement to the Tax Office and choose the appropriate taxation.
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
Drivers have the option to reduce the tax base by deducting costs associated with vehicle leasing, such as fuel, repairs, or the purchase of necessary equipment for work.
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.
