2. Delivery or use of motor vehicles
• In the event of delivery of the vehicle
In this case, the remuneration will be valued at the cost of acquiring the vehicle for the employer, including the expenses and taxes imposed on the operation, such as: VAT , registration tax, customs duties, etc. Consequently, the entire VAT paid must be included, regardless of whether or not it is deductible for the payer.
• In the event of use of the vehicle
In the case of use, it is necessary to distinguish:
Vehicle owned by the payer : The value will be 20 per 100 of the annual cost of acquiring the vehicle for the employer, including the expenses and taxes levied on the operation.
Vehicle not owned by the payer : The value will be 20 per 100 annually over the market value, including expenses and taxes inherent to the acquisition, which would correspond to the vehicle if it were new.
Vehicle belonging to companies whose habitual activity is the transfer of use of motor vehicles: The valuation may not be lower than price offered to the public of the service in question.
Applicable reductions in the valuation of energy efficient motor vehicles
Regulations: Art. 48 bis Regulation Personal Income Tax
In the previous cases a, b and c of transfer of use of the vehicle, the resulting valuation may be reduced by up to 30 percent in the case of vehicles considered energy efficient, in the terms and conditions that are indicated below:
In the case of vehicles considered energy efficient because they comply with the Euro 6 emissions limits provided for in Annex I of Regulation ( EC ) No. 715/2007 of the European Parliament and of the Council, of 20 June 2007 on type approval of motor vehicles with regard to emissions from passenger cars and light commercial vehicles (Euro 5 and Euro 6) and on access to information relating to repair and maintenance of vehicles, the valuation of income in kind for the use may be reduced by the following percentages :
Reduction of 15 percent of the resulting amount, when the vehicle meets the following conditions:
- Your official CO emissions2 are not greater than 120 g/km and
- The market value that would correspond to the vehicle if it were new, before taxes, does not exceed 25,000 euros.
Reduction of 20 percent of the resulting amount, when the vehicle meets the following conditions:
- Your official CO emissions2 do not exceed 120 g/km.
- These are hybrid vehicles or vehicles powered by internal combustion engines that can use alternative fossil fuels (autogas – LPG – and Natural Gas) and
- The market value that would correspond to the vehicle if it were new, before taxes, does not exceed 35,000 euros.
Reduction of 30 percent of the resulting amount, in the case of any of the following categories of vehicles:
- Battery electric vehicle (BEV).
- Extended range electric vehicle (E-REV).
- Plug-in hybrid vehicle (PHEV) with a minimum range of 15 kilometers provided that, in this case, the market value that would correspond to the vehicle if it were new, before taxes, is not greater than 40,000 euros.
• In the case of mixed use of the vehicle (company purposes and employee's private purposes)
In the case of mixed use of the vehicle, for company purposes and for the employee's private purposes, the taxpayer will only be charged with remuneration in kind to the extent that he or she has the power to use the vehicle for private purposes, regardless of whether or not there is an effective use for said purposes. In short, in these cases, the determining parameter of the valuation of the remuneration in kind must be the availability of the vehicle for particular purposes.
Covid-19: The transfer of the use of the vehicle by the company to the worker during the state of alarm due to the coronavirus health crisis constitutes for him a performance of work in kind, since, first of all, the state of alarm does not imply the immobilization of the vehicle but the limitation of travel to those permitted in said state and, secondly, the attribution to the taxpayer of the remuneration in kind derived from obtaining the right to use the vehicle is to the extent that the taxpayer has the power to dispose of the vehicle. for particular uses, regardless of whether or not there is an effective use for said purposes.
• In the event of use and subsequent delivery
In this case the valuation of the latter (the delivery) will be carried out taking into account the valuation resulting from the previous use. For these purposes, the valuation of use must be estimated at 20 percent per year, regardless of whether the availability of the automobile for private purposes has been total or partial.
|Assumptions||Rules of assessment|
|Delivery of property to the employee||Acquisition cost + inherent expenses and taxes|
|Employee use||Company owned vehicle||20% annual x (acquisition cost + inherent expenses and taxes)|
|Vehicle NOT owned by the company||20% annually x market value (new vehicle)|
|Use and subsequent delivery to the employee||During the period of use||
Rule for use case:
|Later delivery||Market value (time of delivery) – utilization valuation (*)|
(*) The utilization assessment should be estimated at 20 percent annually regardless of availability for particular uses. (return)
- In any case, the non-passed-on account income must be added to the corresponding tax valuation in order to determine the full performance of the work.
- In general, it will only be appropriate to impute to the taxpayer a remuneration in kind to the extent that he has the power to use the vehicle for private purposes , whether or not there is an effective use for such purposes.
Example 1: mixed use of the vehicle
Don APL He has a car on loan from his company that he uses for work purposes and for private use. Taking into account the nature and characteristics of the functions carried out by the worker in his company, the percentage of use of the vehicle for the company's work purposes is estimated at 30 percent. The acquisition cost for the company of said vehicle amounted to 30,000 euros. The car is a hybrid (non-electric) vehicle that complies with the Euro 5 and Euro 6 emissions limits provided for in Regulation ( EC ) No. 715/2007.
Determine the amount of remuneration in kind corresponding to the use of the car in fiscal year 2021 if the payments on account made by the company in said fiscal year for this remuneration in kind, which have not been passed on to the worker, have amounted to 1,300 euros.
Use of the car for work purposes (30 percent): It does not constitute remuneration in kind.
Availability of the car for private purposes: It constitutes remuneration in kind, regardless of whether or not there is effective use of it for particular purposes (100 per 100) – (30 per 100) = 70 per 100.
Value of remuneration in kind:
- Total annual valuation before reduction: (20% s/30,000) = 6,000.00
- Reduction for energy efficient motor vehicles (20% s/6,000) = 1,200.00
- Total annual valuation (6,000 – 1,200) = 4,800.00
Availability for particular purposes: (4,800 x 70%) = 3,360.00
Payment to account not passed on = 1,300.00
Total remuneration in kind ( 3,360 + 1,300 ) = 4,660.00
Example 2: use and subsequent delivery
Don AAP Since January 1, 2018, it has at its disposal for private use a vehicle owned by the company, which acquired it on that date for an amount of 23,000 euros. On January 1, 2021, the company delivers the vehicle to the worker free of charge.
Determine the amount of the remuneration in kind derived from the delivery of the motor vehicle in fiscal year 2021, assuming that the payment on account made by the company in relation to said remuneration in kind, which has not been passed on to the worker, amounts to 4,300 euros. .
- Vehicle delivery rating : (23,000 – 13,800) (1) = 9,200
- Payment on account not passed on = 4,300
Total remuneration in kind: (9,200 + 4,300) = 13,500
Note to example: The assessment of the delivery on 01-01-2021 must be carried out discounting the assessment of the use corresponding to the years 2018, 2019 and 2020. This valuation is estimated at 20 percent per year of the acquisition value of the car (23,000 x 60%) = 13,800 euros.