Non-cash benefit

Privately used (hybrid) electric company cars have already been subject to significantly lower taxation since 01/01/2019: The non-cash benefit from private use will now be set at just 1 % of half of the list price, instead of 1 % of the full list price as in the past, regardless of how high that list price is.

This tax advantage is even effective if the trip log method is used to calculate the non-cash benefit from private use of the vehicle. Only half of the purchase cost of the vehicle is used to determine the depreciation in order to calculate the total expenses incurred for the vehicle. If the employee uses a leased or rental vehicle, then likewise only half of the leasing or rental costs are to be assessed.

The halved basis for calculation also applies when determining the non-cash benefit resulting from use of the company car for travel between the employee's home and primary workplace (0.03% regulation) and trips to the family home, for workers with two households.

Furthermore, the flat-rate calculation of utility value for all-electric vehicles purchased, leased, or rented after 12/31/2018 and before 01/01/2031 up to a gross list price of € 60,000 has been lowered from 2020 from 0.5 % of the full list price to 0.25 %. For expensive electric cars with a gross list price of over € 60,000, in contrast, the non-cash benefit will continue to be assessed at 1 % of half of the list price.

Regulation up to 12/31/2021: In the past, the following regulation applied to externally chargeable hybrid electric vehicles that were purchased, leased, or rented between 01/01/2019 and 12/31/2021 and provided to the employee for use: The vehicle could have maximum carbon dioxide emissions of 50 g per kilometer driven in order to be subject to taxation at 1 % of half of the list price, or the range for exclusive use of the electric drivetrain would have to be at least 40 km.

Regulation after 01/01/2022: If the vehicle was purchased, leased, or rented after 12/31/2021 and before 01/01/2025, the required minimum range to be taxed at 1 % of half of the list price has been increased to at least 60 km.