Depreciation Expense of Vehicles RR No. 12-2012
  • No Deduction for depreciation shall be allowed unless substantiated by official receipts or other records with
  1. Specific Motor Vehicle Identification Number, Chassis Number or Registrable ID Numbers of the Vehicle
  2. The total price subject to depreciation
  3. The direct connection or relation of the vehicles to the development, management, operations and/or conduct of the trade or business or profession of the taxpayer
  • Only one vehicle is allowed for the use of an employee, the value of which should not exceed Php2.4M
  • All maintenance expenses on account of non depreciable Vehicles for taxation purposes are disallowed in its entirely
  • The input taxes on the purchases of non-depreciable vehicles and all input taxes on maintenance expense incurred thereon are likewise disallowed.

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