Free car: Be aware of the new rates for calculating the value
The tax base for free cars is adjusted from year to year, but many companies do not apply the new rates when reporting, says the Danish Tax Agency. Find out how to calculate the value of a free car and get an overview of the new rates here.
On July 1, 2021, new rates for calculating the value of the free car were introduced and the rates were adjusted on January 1, 2022 and again on January 1, 2023.
However, many companies are still using the same amount for taxation as in previous years. However, because the rates have changed, the value of the free car in January 2023 may not be the same as in December 2022.
The Danish Tax Agency estimates that 1 in 5 companies have not used the new rates when reporting salaries for their employees in both 2022 and 2023. There is therefore good reason to check whether your reports are correct.
You can see the new rates in our article Free car: New rules for calculating tax.
Example: How to calculate the value of a free car
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In this example, 10,083.33 DKK must be reported for each month in 2022, while 10,208.33 DKK must be reported for January 2023.
More information
If you need advice and guidance on company car tax, you are welcome to contact inforevision's tax department. You can read more about us here.
Flemming Saabye
Head of the tax department
T: 39 53 50 38
Jannik Petersen
Tax consultant
T: 39 53 50 47
