2020 - new tax relief for electric company cars
The German government wants to further promote sustainable, affordable and climate-friendly mobility in the business environment too. The tax relief for electric vehicles in companies for employees and employers has already begun in 2019 and is now being further developed.
Interesting for companies: Acquisition costs for electric commercial vehicles (e.g. delivery vehicles) and electrically powered heavy-duty bicycles can now be recognized as special depreciation in the amount of 50 % if the vehicle was purchased in 2020 or will be by the end of 2030. However, depreciation is only possible in the year of purchase.
Interesting for employees: Anyone who is provided with a company car with an internal combustion engine and also uses it privately must pay tax on a „non-cash benefit“, which is calculated according to the logbook or gross list price method (so-called „1-% rule“).
Employees with an electric vehicle or plug-in hybrid as a company car that was/will be purchased after 01.01.2019 have already benefited: They were already subject to a „0.5-% rule“ instead of the 1-% rule for the gross list price method if the vehicles also meet certain requirements, e.g. with regard to CO2 emissions or the range of the vehicle under purely electric drive. This regulation has now been extended and applies to vehicles purchased by the end of 2030.
Further improvements will now be made for pure e-vehicles without carbon dioxide emissions from 2020, but only if their gross list price does not exceed €40,000: Until the end of 2030, drivers of a pure e-company car that is also used privately will only have to pay tax on 0.25 % of the gross list price as a non-cash benefit - effectively a „0.25-% rule“ for pure e-vehicles until the end of 2030.
It is also important to know in this context that, as the legislator refers to acquisition and not „new registration“, these regulations also apply to used e-cars and plug-in hybrids. In addition, these regulations already apply retroactively to the 2019 tax year!
Last but not least, the legislator has extended two further tax benefits for employees until 2030: charging electric vehicles or hybrid electric vehicles at the employer's premises is now tax-free until 2030, i.e. not a non-cash benefit - as is the private use of a company bicycle that the employer gives its employees for use.
Do you have questions about the use of electric cars as company cars - as an employer or as an employee with an electric company car? We will be happy to answer your questions!
