Company car 1% rule / travel expenses
December 10, 2011 | 30,00 EUR | answered by Michael Herrmann
Situation: Calculation of travel expenses between home and office at 0.03%
However, since I travel to the office for work less than 40 days a year and am otherwise engaged in fieldwork, I believe there should be a provision for a lower calculation of travel expenses.
Can the employer take this into account in the monthly payroll or can I only and exclusively reclaim the amount through the tax return?
This would mean that I would have to make a monthly advance payment.
Dear inquirer,
First of all, thank you very much for your inquiry, which I would like to answer based on the information provided and against the background of your commitment within the scope of an initial consultation. The response is based on the description of the facts. Missing or incorrect information regarding the actual circumstances can affect the legal outcome.
According to the new legal situation, the taxation of benefits in kind no longer depends on whether the vehicle "could" be used for commuting to work, but on how often the employee has "actually" used it for journeys between home and workplace. The taxation of benefits in kind does not represent an additional value for these trips, but only a correction item for the deduction of business expenses (Federal Fiscal Court judgments of 4.4.2008, BStBl. 2008 II p. 887 and 890; Federal Fiscal Court judgment of 28.8.2008, BStBl. 2009 II p. 280; Federal Fiscal Court judgments of 22.9.2010, VI R 54/09, VI R 55/09, VI R 57/09, BStBl. 2011 II p. 354-361).
If the company car is used for less than 15 days per month, instead of monthly 0.03% of the list price per kilometer of distance, only the individual journey needs to be taxed at 0.002% of the list price per kilometer of distance (Federal Ministry of Finance letter dated 1.4.2011, BStBl. 2011 I p. 301).
The employer is not obliged to carry out taxation based on individual valuation. The valuation must be carried out uniformly for the entire year. This means that the option can only be chosen from January onwards.
In this case, you must provide the employer with a written declaration monthly, stating when you used which vehicle for journeys to the workplace. This regulation therefore means additional effort for both sides, which the employer does not have to bear. Only when he agrees can taxation based on individual valuation be carried out.
I hope that these details have provided you with a sufficient overview of the situation within the scope of your commitment and this initial consultation, and I remain
Yours sincerely,
Michael Herrmann
Tax advisor
Diploma in Taxation (FH)
