Taxation Of The Private Use Of Company Cars

June 23, 2016


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The Tax Office informed home from Augsburg is the employer a company car provided by the employee for private use available, is this an imputed, which can be taxed as income tax. The Augsburg tax firm portrays home, according to which tax assessment is made. The use of the car is taxed with the employee only for private-led trips. It is considered imputed and so that part of his gross pay. Two methods used for the determination of taxation enabled advantage.

The direct taxation of private trips takes place based on the leading of the workers ride book, where each individual ride with the company car to break down is. The amount of the taxable benefit arises from the clearing of the monthly vehicle costs borne by the employer with the private usage share of the employee. The vehicle, for example, monthly cost of 700 euros and account for 50% of the rides on the private use of the employee, he has one for this period Money values to tax benefit amounting to 350 euro. The use of a journey log means a great effort for the affected workers, which is only worthwhile if he professionally uses the car with a few exceptions. In addition to the direct taxation of the private use, you can apply the one-percent rule. This taxation procedure a lump-sum tax benefit amounting to a percentage of the new price of the car calculated using price list, credited monthly employee. Additional will be charged per single journey between private home and work more 0.03 percent of the calculated new price on. Lump-sum taxation of private car requires no exact accounting on the part of the employee bringing but not to take into account the disadvantage, the age-typical loss of value of a vehicle, because it is at once a certain value.

Whether the private use of a car for the workers actually represents a financial advantage he or she as a result of higher net remuneration with a car better running”, must be individually determined for each individual case. In any case, benefit through an increased tax burden of money values reduces the disposable income of the employee. The Augsburg tax firm supports its clients of home like it to develop a tax optimal design of regular income and money worthy benefits. For more information on this topic, the experienced tax experts are always ready. Press contact tax law firm home contact person: Gerhard home accountant clinker mountain 9 86152 Augsburg phone: 0821/344 88-0 fax: 0821 / 344 88-50 E-Mail: Homepage: