Changes in the Company Car Taxation
More favorable taxation applies to the supply of a company car to an employee, partner or shareholder!
Important changes are:
- Taxable income also includes partners or shareholders and their relatives, not just the employees.
- The calculation of the value of the concession of a vehicle will now be performed “at a progressive tax rate” and not as before, where the total value of the vehicle was subject to a single tax rate
- By choosing a company vehicle with Retail price before taxes (LTPF) of up to 40,000 euros which, however, emits up to 50 gr. CO2 / km then no additional income will be recorded from its use
- The value of vehicles leased exclusively for business purposes and exempt from taxation is increased from 12,000 euros to 17,000 (LTPF).
The company has 4 company cars for its executives and shareholders:
1 A company vehicle which is three years old and has a Retail price before taxes of € 20,000 and is used by the Director of the company
2 A company vehicle which is eight years old and has a Retail price before taxes of € 12,000 and is used by a member of the Board of Directors of the company
3 A company vehicle which is one year old and has a Retail price before taxes of € 13,000 and is used by a member of the Board of Directors of the company
4 A company vehicle which is eleven years old and has a Retail price before taxes of € 50,000 and is used by a shareholder of the company
5 A company vehicle which is one year old and has a Retail price before taxes of € 26,000 and is used by a Director of the company
|Retail price before taxes||Value 2019||Value 2020||Difference||Difference %|
In conclusion, with the tax law, there is a relief of up to 43% in the categories with a retail price of 13000/14000, while cars with a retail price of over 50,000 and regardless of age, the relief reaches 11%.
Comparative scale for calculating the rate of a car concession