Private use of company car: (3) Pro rata value for business use of less than 50%
If the vehicle is used less than 50% and more than 10% for business purposes, it can still be allocated to discretionary business assets. However, since 2006, private use must be calculated and taxed using the so-called partial value (§ 6 para. 1 no. 4 sentence 2 EStG).
This means: The value of private use is based on the proportionate actual costs - as with the logbook method. However, the business or private usage share does not need to be proven with a "proper" logbook and its strict conditions, but can be credibly demonstrated with informal records. As with the logbook method, enter the usage value in line 19 and the corresponding VAT in line 16.
Private usage value = Total costs x Private usage share
Private usage share = Kilometres driven privately (according to records) : Total mileage x 100
This is how you determine the partial value:
- First, add up all vehicle costs, e.g. depreciation, insurance premiums, fuel (petrol, diesel, petrol costs, fuel costs, fuel receipt, tank filling, refuelling, fuel costs), vehicle tax, inspection and repair costs, etc. These are deductible as business expenses.
- Then determine the private usage share by comparing the kilometres driven privately to the total mileage.
- Finally, multiply the total costs by the private usage share. The value thus determined represents the withdrawal value that must be taxed.
- Since the 1% method no longer applies, journeys between home and work can no longer be deducted at 0.03% of the list price, nor can journeys home as part of dual household management be deducted at 0.002% of the list price from the total costs. Instead, the total costs must be reduced by the proportionate costs for these journeys. In return, the distance allowance can be deducted as business expenses.
