Ask a tax advisor on the topic of Other questions to tax advisors

company car

October 8, 2010 | 20,00 EUR | answered by StB Kiehne Katja Kiehne

Hello,
I have been offered to use a company car. Currently, the distance to work is 43km, which will increase to 63km from 2011. The car will mainly be used for commuting to work. I have already researched online and am familiar with the 1% rule and the calculation of the taxable benefit. In Wikipedia, there is a calculation where first the 0.03% per km distance to work + the 1% of the list price are calculated as the taxable benefit, but at the same time the following is deducted from the taxable benefit: "flat-rate taxed travel costs (43km*0.30*15 days). This results in a significantly lower taxable benefit. This would only make a company car worthwhile, as without it, I would only get reimbursed for travel expenses. Is this option possible if the employer agrees?
Best regards

StB Kiehne Katja Kiehne

Yes, this is possible according to § 40 paragraph 2 sentence 2 of the Income Tax Act, if your employer agrees to it. However, in this case you cannot claim travel expenses as advertising costs (commuting allowance).

There is a possibility that the employer shifts the flat-rate tax onto you.
Kind regards

Katja Kiehne
Tax consultant
Graduate in Financial Management