company car taxation
October 13, 2012 | 30,00 EUR | answered by Dr. Yanqiong Bolik
Since May 2011, I have owned a company car. This has been declared by my employer at 1% and taxed accordingly for personal use. In addition, I use the company car to commute to 2 different workplaces. The first workplace is 30 km from my place of residence and I visit it approximately four times a week. The second workplace is 110 km from my place of residence and I visit it once a week, a maximum of 40 times a year.
My question is, how and where do I include this information in my 2011 tax return and will there be any additional taxes to pay?
Dear inquirer,
Thank you for your inquiry, which I am happy to answer taking into consideration your input and the rules of this platform.
Please note that my explanation is based on the situation presented, and that adding, omitting, altering information or the ambiguity of information can change the tax result.
The use of the company car for the journey between home and the regular place of work is generally considered to be in the private sphere. As the company car is used for journeys between home and regular place of work for more than five calendar days in a calendar month, the taxable benefit from the provision of a company car for private use is to be taxed as ongoing employment income. In addition to the taxation of private use via the 1% rule, according to § 8 Abs. 2 Satz 3 EStG, a taxable benefit of 0.03% of the gross list price for each distance kilometer covered between home and the regular place of work must be taxed monthly. In the income tax return, the employee can claim 0.3 EUR/distance kilometer as advertising costs (recording in Annex N lines 36 to 39).
However, if the use of the company car is pauschal taxed according to § 40 EStG, the employee cannot claim the distance lump sum as advertising costs.
Taxable benefits are generally subject to taxation. If no wage tax is withheld and paid for these, a subsequent taxation may be considered.
I hope I could be of assistance to you.
If there is still 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
