Company car with 1 plus 0.03 percent taxation and choice of primary or secondary residence.
June 15, 2020 | 50,00 EUR | answered by Steuerberater Knut Christiansen
Hello,
I have a company car that I have to tax at 1% of the gross list price + 0.03% per kilometer.
I currently live in a kind of student flatshare (4 people in total), roughly 10km (or 25 minutes commuting time) away from my workplace.
I plan to move in with my girlfriend into a shared rental apartment, roughly 60km (or 50 minutes commuting time) away.
What realistic options do I have to minimize my tax burden?
#1: Keep my main residence in the current apartment (student flatshare), have a second residence at the new location (no second residence tax is due at the second residence):
how does the tax office, my company or similar entities control where my "real center of life" is?
Will the tax office or similar entities be suspicious if I have a second residence so close to my main residence?
Does my company receive information from the tax office or similar entities about whether I have registered a second residence?
I get along well with the main tenant of the student flatshare, so I have some flexibility in this situation.
#2: I do not change my registration, meaning I officially continue to live only at my current main residence (student flatshare).
How does the tax office, registration office, or similar entities check if I have registered at the new residence?
#3: Are there any other options aside from the above two?
If I choose one of the above ideas, are there any specific points I should consider (for example, not always refueling at the gas station near the second residence)?
Thank you,
F.
Good day and thank you for using frag-einen.com!
I would like to answer your questions as part of an initial consultation. Please note that this consultation cannot replace a personal consultation and therefore does not have a binding character. Rather, it is about providing an initial tax assessment.
#1 In general, the examination can result from questioning. The information provided then leads to the assessment of where your main residence is located. Essentially, the tax office would not be suspicious if you have a second residence close to your main residence, but due to a shorter distance, it leads to a reduction in travel time to work. You could easily explain that you commuted during the week from the previous apartment (shared flat) because the travel time is simply shorter. There is no exchange of information between the company and the tax office.
However, the weekend trip to the more distant apartment would have to be taxed by your employer with an additional 0.002% per kilometer of distance, if there is no double household management or it is not claimed.
#2 There is no monitoring here unless there are abnormalities suggesting that you have a residence in the other apartment (e.g. signed lease). Otherwise, there is of course a legal obligation to register having a residence.
#3 In general, it would be more favorable to keep option 1 (shared flat room). It is important to ensure that you continue to pay rent there monthly and remain registered there. If you otherwise commute to work regularly for less than 15 days/month, you could arrange with your employer for them to only reimburse the actual trips. For example, if you travel for 10 days in a month, only 10 x 0.002%.
I hope this answers your question, otherwise feel free to ask for further clarification at no cost.
I want to point out that this forum cannot replace a detailed and personal tax consultation, but is mainly intended to provide an initial tax assessment. Adding or omitting relevant information could change the legal assessment of your issue.
Best regards,
Knut Christiansen
Tax Consultant
