Dubai being a business hub attracts millions of commercial travelers and entrepreneurs. Many people settle here to grow their business in Dubai. Looking at this scenario, Dubai Car Rental companies provide an opportunity to corporates to lease vehicles on long term contracts through their business company.
Leasing a vehicle is much better than renting because it involves availing rental services for a long period at a previously decided cost. Firstly, it is less expensive. Secondly, you can enjoy the ownership of your dream car for as long as you want. Finally, you will not have to monitor daily mileage.
Moreover, you can get a chance to buy your leased vehicle at the end of the leasing duration. If you are a corporator, we suggest you lease a car through the company instead of your personal reference.
No doubt, it is a better idea to lease your vehicle through your business instead of leasing the vehicle personally. But before deciding, just have a look at the tax amount in both situations. Besides a bundle of benefits, you have to pay some extra charges in the form of a business car tax.
For instance, if you are going to lease a luxury auto through your business, you will be responsible for paying company car tax along with the leasing charges to Dubai Rent A Car company. Now the question is why you are supposed to pay company car tax.
The reason for paying company car tax is that you have used an automobile leased through the company for your personal use i.e., you have covered some miles not as a company corporator but for yourself. As the company is responsible for
supplying fuel charges, it will be economic for you to lease an exotic wheel through your company.
Leasing a car through business gives real benefits to corporators as they are eligible for claiming almost full tax relief on the lease charges. Along with the tax relief, the Monthly Car Rental company of Dubai will provide maintenance at a low cost if the rental company is registered with VAT.
The following are some major conveniences that corporators can avail of while leasing an automobile.
Along with these advantages, there are some associated conditions for a company leased vehicle i.e., corporators are not allowed to claim money back at the end of leased duration as they are already enjoying various concessions.
If you are not the owner of the company, you don’t need to worry as you can still enjoy all the benefits. All you need is to keep a record of miles of coverage per day for your personal use. You will have to pay for your personal used miles coverage to the company at a deductible rate so that corporators can pay those charges to Monthly Car Rental Dubai company.
Enjoy a number of benefits by using car leasing for a luxury automobile from Dubai Car Rental company through your business.