Company car / Cash benefit
January 22, 2011 | 30,00 EUR | answered by Michael Herrmann
Hello,
I have a company car for which I opt for the 1% gross tax as a taxable benefit. Additionally, I also pay tax on the taxable benefit for the "home-workplace" distance of 44km. However, I am now switching to public transportation and have purchased an annual pass. My employer is not willing to change the 44km to the desired 3km.
Now to the question: Can I register a tax-free amount with the tax office that reduces my taxable income by the 41km, or does this only work at the end of the year?
Dear inquirer,
First of all, thank you very much for your inquiry, which I would like to answer based on the information provided and in the context of your commitment to an initial consultation. The response is based on the description of the situation. Missing or incorrect information about the actual circumstances can affect the legal outcome.
The question is whether the surcharge of 0.03% of the list price per distance kilometer must be taxed as a pecuniary advantage, even if the company car is actually rarely or not used for the full distance of the trips to work. The tax authorities want the full surcharge of 0.03% of the list price to be taxed even if you:
- only occasionally use the company car for trips to work (BMF letter dated 28.5.1996, BStBl. 1996 I p. 654, para. I.3).
- do not drive to work with the company car, but with public transportation.
- in addition to the company car, own a - smaller - private second car that you use to drive to work.
The tax authorities always demand the full tax surcharge of 0.03% of the list price per distance kilometer, because it is solely based on the objective possibility of use and not on the extent of actual use.
However, the Federal Fiscal Court has once again decided in three judgments that it "adheres to its case law after re-examination". The surcharge regulation of 0.03% of the list price does not represent an additional benefit of use, but a correction item for the deduction of advertising expenses and therefore only applies to the extent that the employee has actually used the company car for trips between home and workplace. This means specifically: If the company car is actually used for trips to the office less than 15 times a month, instead of the monthly 0.03% of the list price, only the individual trip with 0.002% of the list price per distance kilometer should be taxed (BFH judgments dated 22.9.2010, VI R 54/09, VI R 55/09, VI R 57/09).
You can see that the assessed case does not fully apply to your situation, however, you should try to build such an argument based on the actual use.
If the employer has therefore taxed or has taxed the value of use for trips to work at 0.03% of the list price, you can correct the inflated value in your tax return. This also applies to previous years, if the tax assessment of the relevant year is not yet final. The employer's position is understandable, as in such a contentious case that has only become disputed through current case law, they do not want to take any risks regarding the withholding of income tax.
I hope that with this information, within the scope of your commitment and this initial consultation, I have provided you with a sufficient overview of the situation and remain
Yours sincerely,
Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax advisor
