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In the future, only employees with private access to the company car will be taxed on ...
November 21, 2024

Company cars: Criticism leads to changes in user registration rules

The Ministry of Taxation has updated the executive order on registration of company car users. It now only applies to those who are taxed on free cars. You can avoid the fee if you register before the turn of the year.

As we previously reported, earlier this year the Ministry of Taxation issued a decree requiring all companies to register employees who used a specific company car for a continuous period of more than 30 days.

This resulted in massive criticism from companies and business organizations, and the ministry has now changed the order.

Who should be registered?

In the future, only employees with private access to the company car, and who are therefore taxed on their free car, must be registered as users in the Motor Register. This means that an employee who is provided with a vehicle by the employer and who only uses the vehicle for business purposes will not be registered as a user.

This means far fewer people need to be registered than originally, but it's still a large number - estimated at around 90,000 people.

In companies that lease company cars, both employee and employer must be registered as users.

No-fee registration - for now

The deadline for fee-free registration has not been extended. It is still valid throughout the year, so there is only a short time to register with the Motor Register if you want to avoid the fee.

What do the changes mean for previously submitted registrations?

Few have registered in the Motor Register since the first announcement was made, and the Danish Motor Agency has not implemented the changes because it has been waiting for the rule changes.

Citizens and companies that have submitted registration requests will be contacted by the Danish Motor Agency with instructions on how to proceed.

Companies that have registered themselves via the Change of Ownership app, in the Motor Register, at a motor dispatch or at a license plate operator must make any changes themselves.

You can read more about how it works here: Change of rules on registration of vehicle users | Motorstyrelsen

How to register users in the Motor Register

The registration must be done via a special request form, which can be found on the Danish Motor Agency's website. Remember that the affected employees must provide written authorization so that the registration can be completed correctly and without delay.

See the guide here: New rules for registration of vehicle users | Motorstyrelsen

More information

If you need advice or assistance, 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
fsa@inforevision.dk

Jannik Petersen
Tax advisor
T: 39 53 50 47
jpe@inforevision.dk