Because of working from home or short-time work, the mobile status symbol of many employees or entrepreneurs often stays in the garage during the Corona crisis. If you take this into account in your tax return, you can save money.
Dhe car provided by the employer is a typically German affair, of whose economic and at the same time emotional importance is also demonstrated by the awe-inspiring designation as “company car”. Also typical of the country are the detailed tax regulations, which must be observed here in addition to aspects such as horsepower, torque and extra equipment.
In addition to the undeniable prestige, a tangible advantage of the company car is that the employer takes care of the purchase, maintenance and upkeep of the car and often even pays all or part of the cost of fuel. The company car usually appears as an item of several hundred euros in the monthly payroll and significantly increases the taxable income. The concept continues to enjoy preferential tax treatment, although the economists of the Advisory Council have been calling for years to finally abolish or limit the benefits to assess macroeconomic development. They justify these demands, among other things, with environmental protection, although company cars with electric drives that are considered more environmentally friendly enjoy even more generous tax incentives.