Revenue Regulations (RR) No. 12-2012

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RR No. 12-2012 Deductibility of Depreciation and Other Related Expenses of Vehicles

Revenue Regulations (RR) No. 12-2012, dated October 12, 2012, prescribes the rules on the deductibility of depreciation expenses as it relates to purchase of vehicles and other expenses related thereto, and input taxes allowed therefor.

Read also Revenue Memorandum Circular (RMC) No. 2-2013 for some clarification regarding this matter. Click Here!

On a summary Revenue Regulations No. 12-2012 prohibits the deduction of depreciation expense and maintenance expenses of vehicles with cost exceeding P2,400,000.00 and disallowing input VAT on the purchase of this vehicle and input VAT on maintenance expenses to be deducted from output VAT, unless such vehicle is used primarily in the business of transport operation and lease of transportation equipment. Continue reading

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