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I understand the reporting and tax rules pertaining to using a company-purchased vehicle for personal use, but I wanted to know if the same rules apply to a rental car being expensed by the company for personal use?

Some factors such as:

  • Is it considered a taxable fringe benefit for the employee?
  • Does the company have to report the proportion of personal use on the vehicle against the expense of the rental company as a taxable wage/income?
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1 Answer

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Is it considered a taxable fringe benefit for the employee?

Yes.

Does the company have to report the proportion of personal use on the vehicle against the expense of the rental company as a taxable wage/income?

Yes.

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