1. What is German Company Car Tax?

The German company car benefit-in-kind tax (Geldwerter Vorteil) is calculated based on the vehicle's list price and CO2 emissions. This tax represents the monetary benefit an employee receives from using a company car for private purposes.

2. How Does the Calculator Work?

The calculator uses the German company car tax formula:

Where:

• \( \text{List Price} \) — Vehicle purchase price including VAT (EUR)
• \( \text{CO2 g/km} \) — Carbon dioxide emissions in grams per kilometer
• \( \text{Tax Rate} \) — Applicable income tax rate (%)
• \( 1\% \) — Standard monthly benefit rate

Explanation: The formula calculates the taxable benefit by applying a 1% monthly rate to the list price, adjusted for CO2 emissions, and then applying the individual's tax rate.

3. Importance of Company Car Tax Calculation

Details: Accurate calculation of company car benefits is essential for proper tax declaration, compliance with German tax laws, and financial planning for both employers and employees.

4. Using the Calculator

Tips: Enter the vehicle's list price in EUR, CO2 emissions in g/km, and your applicable tax rate in percentage. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is included in the list price?
A: The list price includes the vehicle's purchase price, VAT, and any optional extras, but excludes registration fees and insurance.

Q2: How are CO2 emissions determined?
A: CO2 emissions are based on official WLTP (Worldwide Harmonised Light Vehicle Test Procedure) values provided by the manufacturer.

Q3: What tax rate should I use?
A: Use your marginal income tax rate (Spitzensteuersatz) which typically ranges from 14% to 45% in Germany.

Q4: Are electric vehicles treated differently?
A: Yes, electric vehicles often receive preferential treatment with reduced taxable benefits under German tax law.

Q5: Is this calculation monthly or annual?
A: The basic 1% rate is monthly, but the final tax amount represents the annual tax liability on the benefit.