Cars

0.25 percent: Company car tax regulation for e-cars

Who his Company car also Private drives, must include in the tax return monetary benefit specify and the Tax on usage. Electric car drivers and plug-in hybrids have an advantage here. At the beginning of 2019, this amount was already reduced for electric company cars and now even again to the so-called Quarter scheme halved. In addition to the increased electrical purchase premium and subsidies for domestic wall boxes, these are further government measures to boost demand for e-cars only 0.25 percent tax deductible for company cars costing up to 60,000 euros do. The surcharges (e.g. for commuting) have also been halved. Plug-in hybrid and Fuel cell vehicles such as more expensive service electric vehicles fall under the 0.5 percent rule. The tax relief applies to e-cars that were used as company cars for the first time from January 1, 2019; it is still running until December 31, 2030. This is how an electric car works.

How does the 0.25 percent rule work for company cars?

The reduced taxation works like the 1 percent rule that was previously common for all privately used company cars. The The gross list price of the new vehicle is used – even if the car was purchased at a lower price or as a used car. For example, anyone who opts for a BMW i3 (120Ah, 170 PS, approx. 300 km range) as a company car would have to use the RRP of 39,000 euros as a basis for the calculation. A quarter percent of this would have to be given monthly as a monetary benefit for private use. 97.50 euros would therefore be added to the taxable income. At an average tax rate of 40 percent, the BMW i3 as a company car then costs 468 euros in taxes per year.

Will the commute to work also be taxed less?

If the electric company car is also used to commute to work more than 47 days a year, this must also be taxed – here too, the legislator gives a preferential treatment for electric and hybrid cars. Instead of the usual 0.03 percent, only 0.0075 percent of the list price per kilometer of the one-way trip is due for e-vehicles. With the BMW i3, that makes 2.92 euros per kilometer. For a 20-kilometer commute to work, an additional 58.40 euros would have to be taxed per month – in the above example, this makes a total of 700.80 euros in tax per year. As with the 1 percent rule, the alternative to the 0.25 percent rule is the driver’s log (more information on the 1 percent rule). This is how you tow an electric car.

What are the funding requirements for hybrid cars?

Hybrid cars that are taxed according to the 0.5 percent rule must meet a number of requirements. One of them is the external charging (plug-in hybrid). Mild hybrids are therefore out of the regulation. Users must also use the 0.5 percent rule at least one meet the following two criteria: Your plug-in company car may no more than 50 grams of CO2 per kilometer eject, or the pure electric range must with at least 40 kilometers (from 2022: 60 kilometers; from 2025: 80 kilometers). If the conditions are not met, the company car falls under the otherwise usual 1 percent rule.

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