Corporate Carsharing Benefit: Who Qualifies and What You Get
Learn how employees using company cars can benefit from tax advantages for private travel in Germany.
This scheme allows employees who have access to a company vehicle to use it for private travel under specific tax-advantaged rules.
Who it's for
This benefit is available to employees who have been provided with a company car for work purposes.
What you get
You receive a tax advantage when using your company vehicle for private trips. This makes it more affordable to have access to a car for your personal life without paying the full tax rate usually applied to such perks.
What it costs you
The benefit is treated as a non-cash benefit, which means it is taxed as part of your income. You will typically follow a specific rule where a set percentage of the car's value is added to your taxable income.
The catch to know
You must decide how you will track your usage. If you do not choose a standard flat-rate rule, you are required to maintain a strict, detailed logbook of every single trip taken to satisfy tax requirements.
How to apply
- Confirm with your employer which tax method they use for company vehicles.
- Determine if you will use the standard flat-rate rule or the logbook method.
- Maintain all necessary records or receipts if you are using the logbook approach.
- Report the benefit as part of your income when filing your annual tax return.