As part of the support of electromobility, the Chamber of Deputies has approved an amendment concerning the use of the work cars for private purposes. For employees, who have a low-emission car available free of charge, should thus have their taxable amount reduced.
 
The taxable income of the employee is currently increased in all cases by 1% of the purchase price of the car provided. According to the amendment, though, the increase will be only 0.5% of the purchase price for low-emission vehicles, while the original 1% will remain in force for other vehicles.
 
The amendment is planned to take effect retroactively for the entire taxable period of 2022. For the months, during which the amendment was not in force, the reduction in the income tax base will be applied as part of the employee’s annual settlement of prepayments. The amendment is now waiting to be approved by the Senate.
 
Author: Lukáš Pflug