Passenger Vehicle Expense Restriction Calculation Tool

The tax treatment of expenses related to the purchase and use of passenger cars creates a direct tax base and profitability impact for businesses. Especially for high-priced vehicles, the limits arising from SCT and VAT, depreciation amounts, and periodic expenses can lead to time loss and error risk when managed manually.

Tools1984 Passenger Vehicle Expense Restriction Calculation Tool is designed to calculate:

• The deductible portion of SCT + VAT,
• Depreciation ceilings excluding or including taxes,
• Distinctions of KKEG

in a practical and understandable way on a single screen.

What is Passenger Vehicle Expense Restriction?

Expense restriction for passenger cars is a framework that regulates how taxpayers, who are not engaged in the business of renting/operating passenger vehicles, can deduct certain expenses related to the purchase and use of passenger cars, not all but certain ratios and limits. These regulations are based on the amounts updated annually through revaluation under the relevant articles of the Income Tax Law.

Therefore, the choice of the correct year and method becomes critical.

2025 Passenger Vehicle Limits (Summary)

Common practical limits for the year 2025:

SCT + VAT Deduction Limit

The portion of the total SCT + VAT that can be directly deducted in the first acquisition of a passenger vehicle is limited to 990,000 TL. The exceeding part becomes KKEG.

Depreciation Ceilings

• Depreciation limit based on the acquisition cost excluding SCT + VAT: 1,100,000 TL
• If taxes are included in the cost or if the vehicle is acquired second-hand, the upper limit subject to depreciation: 2,100,000 TL

These two limits yield different results in practice depending on the choice of “will taxes be deducted as expenses or added to the cost?”.

70% Rule for Current Expenses

For taxpayers outside the business subject to exceptions, the maintenance, repair, fuel, insurance, and other current expenses related to passenger cars are accepted as at most 70% deductible; the remaining portion is considered KKEG.

Monthly Ceiling for Rental Vehicles

In 2025, for rented passenger vehicles, the portion of the monthly rental expense up to 37,000 TL can be subject to deduction.

What Does the Tools1984 Tool Calculate?

This calculation tool focuses on two main preferences centered around purchase:

1. Deduct SCT and VAT as expenses
2. Include SCT and VAT in the cost

After this selection, the tool shows:

• The deductible portion of SCT+VAT and KKEG
• Which ceiling the depreciation base amount will be limited to
• The first-year limited depreciation estimate according to normal or accelerated depreciation choice

on a single page.

Calculation Logic (Short and Clear)

1) If Taxes Are Deducted as Expenses

• The deductible portion of SCT+VAT is limited to 990,000 TL in 2025.
• In the depreciation calculation, the ceiling for the amount excluding SCT/VAT is 1,100,000 TL.

2) If Taxes Are Added to the Cost

• The total amount subject to depreciation is evaluated including taxes and is subject to the 2,100,000 TL ceiling.

The difference between these two scenarios can create a significant tax base effect, especially for high-tax vehicles.

Who Is It Critical For?

This tool is especially beneficial for:

• SMEs with multiple vehicle fleets
• Purchasing and finance departments
• Accounting teams
• Business owners working with financial advisors

providing the advantage of “speed + accuracy”.

Manual calculations can make mistakes in three main areas:

• year limits get mixed up,
• the choice of whether taxes are expenses/costs is reflected incorrectly,
• KKEG distinctions are left incomplete.

This tool controls these three risks on a single screen.

Why Is This Tool a “Profitability Tool”?

This calculation is not only a tax technicality but also a investment decision tool.

Because:

• two different accounting preferences for the same vehicle,
• different depreciation methods,
• different KKEG effects

change the total cost and net profitability of the business.

That’s why within Tools1984, this tool:

• Depreciation Calculation,
• Inflation / price increase,
• Profitability simulators

cross-linking strengthens the product chain.

Frequently Asked Questions

What is the deduction limit for SCT+VAT in 2025?

The directly deductible portion of SCT + VAT in the first acquisition is limited to 990,000 TL.

How are depreciation ceilings applied?

In 2025

• 1,100,000 TL for the amount excluding taxes,
• if taxes are included in the cost or if the vehicle is acquired second-hand, the 2,100,000 TL ceiling is applied.

What does the 70% rule for vehicle expenses mean?

Current expenses such as fuel, maintenance, and insurance are accepted as at most 70% deductible, and the remaining portion is considered KKEG.