E-cars as company cars: New limit for employee benefit

Electric Car tax benefits

Company cars with electric drive are taxed at a favourable rate if they are also used privately. For such vehicles, only a quarter of the gross list price has to be set for the application of the so-called one percent regulation.

Electric car employee benefits

When applying the journey log method, only a quarter of the acquisition or comparable rental or leasing costs are included in the total costs.

The preferential taxation has now been extended once again: since the end of June, it can be used for vehicles up to a gross list price of 60,000 euros. Previously it was 40,000 euros.

„The prerequisite, however, is that the vehicle was only given to the employee for the first time from 1 January 2019 for use, "explains Uwe Rauhöft from the Federal Association of Wage Tax Aid Associations in Berlin. This Regulation shall not apply to older vehicles."

Retroactive increase of limit value

Since the threshold was increased retroactively as of 1 January 2020, the calculation of the monetary advantage for private use of the e-company car with a gross list price of 40,000 euros to 60,000 euros was made too high in the months from January to June.

The same applies if the company vehicle was used for routes between the apartment and the first business location. Previously, for vehicles with a gross list price of more than 40,000 euros, the assessment base was only halved.

Check wage statements better

Rauhoft advises: It is essential to check the payroll statements of employees with electric and fuel cell company cars, which may also be used privately and/or for journeys from the home to the first place of activity, whether the monetary advantage is correctly recognised. “

Since not only the wage tax burden but also the level of the social security contributions decreases for employees, the employer can also benefit from the raising of the limit value to 60,000 euros. Irrespective of this, the employer is obliged to make a correction of the monetary advantage.dpa