There are more than 200,000 Danes who, through their jobs, have this opportunity and thus can drive quietly on holiday abroad in the company car, without being taxed further.

Although the tax legislation is very strict and has detailed rules in many areas, there are still areas where it is possible for employees to obtain benefits in connection with taxation of company cars. One of the examples is that with the employer's acceptance you can drive abroad on holiday without paying additional tax on the company car, because the taxation is based on the value of the car, according to the percentages in section 16 of the Tax Assessment Act.

Fixed taxation regardless of the number of kilometers and destination

Taxation of a free company car is a so-called availability tax, which is independent of the actual use. This means that taxation is the same, regardless of how much the employee drives privately and regardless of whether the self-drive holiday is held or abroad. With Taxation Return Preparation In Australia this is important.

Taxation of company car includes all operating expenses of using the car such as ownership tax, insurance, repairs as well as maintenance for gasoline, washer fluid and washing. Thus, the employer can cover the cost of using the car without the employee being taxed extra - even if the employee is driving abroad.

The rules also apply if the employee himself pays for the ordinary operating expenses and ubsequently hands over the receipts and gets the money refunded; it can happen without tax consequences.

Employee

Other expenses in connection with private driving or holidays in the company car are not covered by taxation of a free car and are therefore taxable for the employee.

The employee must, for example, pay tax on expenses for, among other things, ferries and parking as well as taxes on bridges and motorways, even if the employer covers the expenses. These expenses are not included in the taxable value and are therefore not part of the ordinary, current taxation. Therefore, if the employer covers these expenses, there is a staff benefit to be taxed.

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