Establish a genuine rental arrangement
The written agreement should identify the vehicle, term, rent, purpose of use, maintenance, insurance and damage responsibilities. There should be evidence of the company's need and actual use.
A transaction with a shareholder is a related-party transaction, so pricing should be at arm's length. Excessive or merely symbolic rent can create separate tax risks.
Separate tax treatment from expense recording
Whether the owner conducts a commercial activity affects withholding, VAT and documentation. Separately check whether the company has a reverse-charge VAT obligation.
Passenger-car rent and expenses may be subject to period-specific limits. Fuel, tolls, maintenance and depreciation-related items are not necessarily treated in the same way.