That’s the one percent rule
The one percent rule is also called the list price method and comes into play when it comes to the private use of company cars. According to the wage tax association Verinite Lohnsteuerhilfe eV, it serves as an alternative to keeping a logbook.
Consumers who also use their company car for private trips have to pay tax on the resulting advantage. As part of the calculation of income tax, one percent of the gross list price of the company car is added to the monthly salary, as the organization writes on its website. This results in a so-called pecuniary benefit, which increases the gross salary. At the same time, the tax rate increases, which means that more income tax is paid each month and the net salary falls.
Calculation example
For example, this means that for a vehicle that costs 35,000 euros according to the gross list price, an “extra” salary of 350 euros per month is taxed. A tax of 0.03 percent of the gross domestic price of the car per kilometer of the distance between home and work is also claimed. If this is 15 kilometers, for example, 0.45 percent of the gross domestic price must also be taxed as income, which also covers all private trips.
Who can save with the one percent rule?
In addition to the simple processing of the one percent rule, which requires only a few steps, this has advantages for employees who travel a lot with the company car privately.
For employees who often want to use their company car privately, the flat-rate one-percent rule is not only more convenient than the time-consuming process of keeping a logbook, it is often also advantageous when it comes to the financial aspect. This is the case when the journey between home and work accounts for only a small proportion of the trips.
Editorial office finanzen.net
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