New case law on the private use of cars for self

New case law on the private use of cars for self

The Federal Fiscal Court (Bundesfinanzhof) has contradicted the administrative view and, in its rulings from 2016, clarified how self-borne costs for a company car have an effect for tax purposes.

If the employer allows the employee to use a company car for private purposes, a non-cash benefit must be taken into account in the employee's pay statement. In principle, this pecuniary advantage is calculated according to the lump-sum value-of-use method in accordance with Section 6 Para. 1 No. 4 sentence 2 of the Income Tax Act 1% of the gross list price. However, there is an option to calculate the individual usage value of the actual vehicle costs on the basis of a (properly) kept driver's logbook.

However, it is often the case that employees themselves bear costs for the company car, such as fuel costs, vehicle tax, insurance premiums, car wash costs or, for example, maintenance and repair costs.

According to previous administrative opinion, the self-paid costs did not reduce the taxable imputed income. The Federal Ministry of Finance has now, to implement the BFH rulings of 30.11.2016 (file number VI R 49/14, Federal Tax Gazette 2017 II, p. 1011 and file number VI R 2/15, Federal Tax Gazette 2017 II, S. 1014), decided on a view more favorable to the taxpayer.

Provided that the employee proves the self-borne expenses, the imputed income attributable to him is reduced. This applies to both the flat-rate 1% method and the logbook method.

However, the total cost of the car does not include tolls, parking fees, warning fees, administrative fines or fines. These cannot therefore be offset against the imputed income either.

Example 1 for calculating the imputed income:

The employee may use his company car (gross list price i.H.V. € 40.000,00) for private use. The usage benefit is calculated according to the 1% method. The self-paid cost of gasoline and a parking space for the year 2017 is € 2.000,00.

€ 40.000.00 x 1% = € 400.00 mtl. X 12 months = € 4.800,00

Reduction of imputed income: € 2.000,00

To be taxed: € 2.800,00

Example 2 for the calculation of the imputed income:

The employer incurred costs for the company car in 2017 i.H.V. € 7.000.00 borne. The employee has additional expenses i.H.V. € 1.000,00 borne by ourselves. The share of private use amounts to 20% according to the properly kept logbook.

Method 1:

20% of travel expenses paid by employer: 20% of € 7.000,00 = € 1.400,00

Method 2:

20% of the total cost: 20% of € 8.000,00 = € 1.600,00

Less the self-borne costs i.H.V. € 1.000,00

To be taxed: € 600,00

If the reduction in imputed income has not been taken into account in payroll accounting, this can be done in the income tax return.

It should be noted, however, that no negative monetary advantage or. Can result in negative wages. A deduction of income-related expenses for the costs borne by the employee in excess of the pecuniary advantage is also excluded.

Like this post? Please share to your friends:
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: