You can easily find out how high your taxes are on your company car and which method you should use with our company car calculator.
This computer integration takes place in friendly cooperation with smart-rechner.
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With our calculator you can easily find out which method is best for you to determine your cash benefit, the monthly and annual tax of your company car. The invoice takes into account the fixed costs and the logbook method.
What is an economic benefit in a company car?
If your employer provides a company car that can also be used for private purposes, the employee will receive a financial benefit. This means that the company car is considered a kind of “salary”, and the company car must therefore be taxed for private trips. The exact calculation and regulation is precisely defined by the Income Tax Act.
1% rule or logbook?
There are two methods to calculate the financial benefit. The 1% method, also known as the standard method, calculates with a fixed monthly amount in euros, while with the logbook, all private trips with the company car must be taxed at the end of the year. You can use our company car calculator to find out which of the two methods suits your company car and gives you an economic advantage.
Also read: Tax: What will change in 2022
The 0.25% rule for electric cars and the 0.5% rule for hybrid cars
Since January 2020, for a purely electric vehicle with a gross list price of up to EUR 40,000, more than half of which is used for business purposes, only 0.25% of the gross list price will be taxed as a monetary component. Since July 2020, the purchase price limit has been 60,000 euros. For hybrid cars as company cars, the 0.5% rule has been in force since 2019, if the following applies (1):
- Purchased before 1 January 2022: The vehicle emits a maximum of 50 g Co2 / km or the vehicle has a pure electrical range of at least 40 km according to WLTP.
- Purchase after 31 December 2021 and before 1 January 2025: Vehicle emits a maximum of 50 g Co2 / km or vehicle has a pure electrical range of at least 60 km according to WLTP.
- Purchased after 31 December 2014: Vehicle emits a maximum of 50 g Co2 / km or vehicle has a purely electric range of at least 80 km according to WLTP.
Also interesting: Do you need to use the home office fixed rate?
What values should I use for the company car calculator?
For the calculation with the 1% method, you need the following information:
Depending on the type of vehicle driving, the charges vary. If you use an electric car, the taxes are lowest, followed by hybrid cars (see above). The internal combustion engine represents the highest tax rate.
Gross list price for the vehicle
The value is calculated on the basis of the vehicle’s gross list price including accessories and VAT. Discounts are not included. In the case of an e-car, it must be taken into account that a gross list price of less than € 40,000 provides an additional discount and thus another benefit (see above).
way of working
The distance is calculated on the basis of the distance between the home and the employer. This is only a single trip, ie. there or back.
The use of your company car leads to an increased tax burden. Please indicate the tax rate at which your income is taxed.
1% method vs. logbook
To compare both methods and your financial benefit, you need the following values in addition to the information for the 1% method:
The purchase price of the car
The purchase price is the price actually paid in euros for the company car.
The calculation of the company car’s annual costs consists of the sum of the fuel costs, the vehicle tax, the car insurance and the repairs per. year.
Share of private use
The share of private use results in the calculator based on the kilometers driven privately in relation to the total number of kilometers.