Company car taxation home-workplace - Liquidity-saving
May 28, 2012 | 25,00 EUR | answered by Dr. Yanqiong Bolik
There is a tax-saving option for liquidity if the distance between home and workplace is 80 km, for example by registering a tax-free allowance on the tax card amounting to 0.03% of the new car price. How would the calculation be done for a assumed new car price of €40,000, and what would be the next steps? What about the commuter allowance?
I would be entitled to a company car from my employer. However, my employer does not tax the benefit of using the car for the commute between home and workplace according to the current calculation based on actual usage. The monthly cost of this is not affordable for me, even though I know I would get it refunded in the following year when filing my income tax return. I want to continue commuting to work by train (with a personal annual pass!) the 80 km distance. I would drive a maximum of 1 km daily to the train station. However, I would still use my second car most of the time. Private use is explicitly allowed, including for my partner.
I understand and accept the taxation based on the 1% rule.
Dear inquirer,
Thank you for your inquiry, which I am happy to answer, taking into account your input and the rules of this platform.
Please note that my explanation is based on the facts presented, and that adding, omitting, changing information, or the ambiguity of information can change the tax result.
According to your description, you would like to reduce the monthly burden of income tax withholding. For this, you can submit a request to your local tax office to register the income tax allowance according to § 39a EStG on your income tax card. For regular trips to your workplace, you have a distance allowance of 80*0.3*230=5,520 EUR, but no more than 4,500 Euros per calendar year. When calculating work-related expenses, the list price of the company car is irrelevant. The amount of 4,500 EUR (possibly additional work-related expenses) is higher than 1,000 EUR. Therefore, you can have the work-related expenses registered as an allowance on your income tax card. The registered allowance will be taken into account when calculating the income tax withholding amount. As a result, you will receive a higher net salary monthly.
I hope I was able to assist you.
If there is still any uncertainty, please feel free to use the follow-up function.
Best regards,
Dr. Yanqiong Bolik
Tax consultant
Bildstöckle 6, 70567 Stuttgart
Tel: +49 (0)711 / 2132 1815
Email: info@zdbz.de
www.steuerberatung.zdbz.de
