The initial State Budget proposal for 2019 provided for a considerable increase in the special taxation on company cars (so called Autonomous Taxation on Vehicles). In summary, the following was proposed:
- Vehicles with a purchase price below 25,000 euros — Increase in the tax rate by 5 percentage points;
- Vehicles with a purchase price equal to or greater than 35,000 euros — Increase in the tax rate by 2.5 percentage points.
The rate for the range between €25 000 and €35 000 would remain unchanged, according to the proposal.
What consequences would this measure have for your company?
Following an analysis, with two vehicles, with different acquisition values:
- Purchase value = 22 000 euros;
- Purchase value = 50 000 euros.
We studied the proposed increase in taxation on the two vehicles under the following conditions:
- No vehicle use agreement with the employee;
- With vehicle use agreement with the employee.
And the results obtained are outlined as follows:
- Increased tax burden by 530 euros;
- Tax burden remains unchanged;
- Increased tax burden by 479.25 euros;
- Tax burden remains unchanged;
However, this measure was not approved and, consequently, the tax burden on company cars will remain unchanged! Let's see!
Special Taxation on Company Cars for 2019
Thus, the autonomous tax rates for 2019 are as follows:
- GO
- 25,000 euros ≥ VA > 35,000 euros – Autonomous taxation = 27.50%;
- VA ≥ 35 000 euros – Autonomous taxation = 35%.
note: VA = Vehicle purchase price.
As for hybrid vehicles, you should consider the following rates for the year 2019:
- GO
- 25,000 euros ≥ VA > 35,000 euros – Autonomous taxation = 10%;
- VA ≥ 35,000 euros – Autonomous taxation = 17.5%.
note: VA = Vehicle purchase price.
Note that these rates are subject to increase by 10 percentage points whenever your company presents negative results.
Vehicles powered exclusively by electricity are excluded from this additional taxation on vehicles.
Article available at UWU.
Car Taxation. Every month, here at Razão Automóvel, there is an article by UWU Solutions on automobile taxation. The news, the changes, the main issues and all the news around this theme.
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