Our company prepared the car rental agreement to the lessee and specified that we will collect the car insurance from the lessee, such collecting insurance payment should be included as income for income tax computation or not?
Panwa: Yes, if the agreement has specified that the lessee have duty to pay such insurance according to the Civil and Commercial Code section 861 and 862 even did not collect the insurance payment from lessee but let the lessee to be the beneficiary from insurance agreement, it is subjected as money or benefit from rental of asset according to the Revenue Code section 40 (5) (a); the Company should include such rental of asset to calculate the income tax according to the Revenue Code section 65.
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