Benefits in kind: Corporate Cars
In a Press Release on December 12, 2019, the Ministry of Finance clarifies the provision that changes the taxation way of benefits in kind in the form of a corporate vehicle (No. 4 of Law 4646/2019).
More precisely, from 01/01/2020 the value of a vehicle's concession to a worker or partner or shareholder by a natural or legal person or legal entity, for any period within the tax year, is calculated on a relative scale, as a percentage of the vehicle's Pre-Tax Retail Price (LTPF).
This means that, now, the value of the concession of the vehicle,is calculated on a 'step by step' basis by applying the relevant rate to the Pre-Tax Retail Price (LTPF), of the vehicle under the relevant 'step', as opposed to the existing system, in which all the value of the vehicle is subject to a single factor.
The new calculation table is configured as follows:
In addition, since this vehicle is exclusively licensed for business purposes and has a Pre-Tax Retail Price up to 17.000 €, the value of its concession is not calculated as income for the employee.