Taxation of company cars
Learn how a company car is taxed in Denmark and use our online tax calculator.By choosing the car's tax base, your marginal tax rate, fuel consumption and, if necessary, self-payment per month, you can calculate the monthly tax payment.
Tax
Leasing fee deductions
The leasing fee is tax-deductible as an operating cost. Hereby you will get full fiscal effect throughout the lease period.
Free car taxation
When a company leases a car for an employee, the employee is taxed. This is also the case if the company buys the car. The tax is calculated from the car's acquisition price. This is what we refer to as the car's tax base.
You have to pay taxes of 23% of the car's value up to 300,000 kr. and 22% of the excess value plus an environment fee. This fee depends on the car's fuel consumption.
After 36 months the car's tax base decreases by 25%, which becomes the new tax base. You have to pay taxes of 23% of the car's new tax base up to 300,000 kr. and 22% of the excess value (Note: Only on contracts originally lasting a minimum of 48 months).
| Tax base | 370,000 kr. | |
|---|---|---|
| Environment fee | 5,600 kr. | |
| Tax: 23% of 300,000 | 69,000 kr. | |
| Tax: 22% of 70,000 | 15,400 kr. | |
| Taxable value per year | 84,400 kr. | |
VAT
No VAT payment
Deduction in VAT
- ... you must lease the car for a continuous period of more than 6 months.
- ... work-related driving must account for at least 10 % of the total driving.
First three years: Registration fee x 2 % x 25 %.
After three years: Registration fee x 1 % x 25 %.
Example
New car with a registration fee of 150,000 kr.
First three years: 150,000 x 2 % x 25 % = 750 kr. (per month).
After three years: 150,000 x 1 % x 25 % = 375 kr. (per month).
Find your next company car in our online showroom
You can build your company car in our online showroom. Use the filters to find specific models and brands. From this, you can customize colours, additional equipment, annual mileage and lease period.
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