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Basis for 1 percent flat rate for private use of rental vehicle.

July 14, 2021 | 30,00 EUR | answered by Steuerberater Knut Christiansen

Hello,

I am a partner in a GmbH, which has purchased a vehicle for 60,000 EUR. Since I also use the vehicle privately, I have been paying taxes privately for a long time, at a rate of 1% for the private use of a company vehicle.

Let's assume the vehicle is sold (to my partner), and she rents it to my company.

Question 1: Do I still have to pay the 1% tax on the vehicle's private use? I assume that I do.

Question 2: What "acquisition costs" will be used as a basis? The selling price (which is significantly lower today, as the vehicle is older) or the monthly rental costs?

Question 3: Will repair, operating, and maintenance costs be included in the 1% flat rate or not?

Thank you!

P.S.: I assume that this question is easy for you to answer and is a standard case, hence the low stake.

Steuerberater Knut Christiansen

Good day,

I am happy to provide you with the following information regarding your questions:

1) Since you will continue to use the vehicle privately, the non-cash benefit must continue to be taxed. Either through the 1% method or by keeping a "clean" logbook to demonstrate low private use.

2) The relevant factor for the valuation under the 1% method is the gross list price at the time of the vehicle's first registration. Therefore, it does not matter what the vehicle cost for your partner, but what it once cost according to the manufacturer's list.

3) Monthly costs do not play a role in the valuation of the 1% method, only the list price (see 2). However, the GmbH can be required by rental agreement to cover these costs. Your partner would then only receive a rent for the vehicle, but would also have to declare this within the scope of other income (after deduction of advertising costs, especially depreciation).

I hope this answers your questions, otherwise feel free to ask for further clarification at no cost.

I would like to point out that this forum cannot replace a detailed and personal tax consultation, but is primarily intended to provide an initial tax assessment. By adding or omitting relevant information, the legal assessment of your concern could be different.

Kind regards

Knut Christiansen
Tax consultant