Fiscal changes
Various tax changes regarding motor vehicles will come into force from the coming year 2023. These relate to the NoVA tariff, new maximum CO2 emission values for "low-emission vehicles" and much more.
1. Change NoVA tariff
As of 1 January 2023, the CO2 deduction amount, which is to be deducted from the CO2 emission value of the vehicle to determine the NoVA rate, the maximum tax rate as well as the malus limit and the malus amount will change for the NoVA rate for passenger cars and also for light commercial vehicles.
New NoVA tariff
| CO2 values according to WLTP | from 1.1.2022 | from 1.1.2023 | from 1.1.2024 | from 1.1.2025 | ||||
|---|---|---|---|---|---|---|---|---|
| CAR | TRUCK | CAR | TRUCK | CAR | TRUCK | CAR | TRUCK | |
| CO2 deduction | 107 g/km | 160 g/km | 102 g/km | 155 g/km | 97 g/km | 150 g/km | 94 g/km | 147 g/km |
| Maximum tax rate | 60% | 70% | 80% | |||||
| Malus limit | 185 g/km | 238 g/km | 170 g/km | 223 g/km | 155 g/km | 208 g/km | 155 g/km | 208 g/km |
| Malus amount per 1 g/km | €60 | €70 | €80 | |||||
| Deduction item | 350 € | 350 € | 350 € | 350 € | 350 € | 350 € | 350 € | 350 € |
Passenger car: tax rate = (CO₂ emission value in g/km - 102 g/km) : 5
Truck: Tax rate = (CO₂ emission value in g/km - 155 g/km) : 5
2. non-cash benefit: New maximum CO2 emission value for "low-polluting vehicles
If the company vehicle can also be used for private purposes (e.g. for journeys between home and work), there is a benefit from the employment relationship which increases the assessment basis for wage tax, social security contributions and ancillary wage costs (DB, DZ, KommSt) in the amount of the non-cash remuneration value. Only if a vehicle with a CO2 emission value of 0 g/km is used, no remuneration in kind is to be recognised.
When determining the non-monetary remuneration value, a distinction must be made between low-emission vehicles and other vehicles. The maximum CO2 emission value for low-pollution vehicles is adjusted annually, with the limit in 2023 being 132 g/km. If the CO2 emission value is below the limit value in the year of first registration, the non-cash reference value for low-emission vehicles can also be applied in subsequent years.
If the CO2 emission value of a vehicle is not above the limit value, both the general non-monetary remuneration value and the half non-monetary remuneration value, which can be applied if the monthly travel distance is demonstrably not more than 500 km, and the respective maximum amounts are lower by 25%.
Non-cash remuneration values
| CO2 values according to WLTP | 2022 | 2023 | 2024 | ab 2025 |
|---|---|---|---|---|
| CO emission limit value for low-emission vehicles | 135 g/km | 132 g/km | 129 g/km | 126 g/km |
| Remuneration in kind for emission value > limit value | 2% of the actual acquisition costs (incl. VAT and NoVA), maximum € 960 | |||
| Remuneration for emission value <= limit value | 1.5% of the actual acquisition costs (incl. VAT and NoVA), maximum € 720 | |||
| Half remuneration in kind for emission value > limit value | 1% of the actual acquisition costs (incl. VAT and NoVA), maximum € 480 | |||
| Half remuneration in kind with emission value <= limit value | 0.75% of the actual acquisition costs (incl. VAT and NoVA), maximum € 360 | |||
| "Mini" factual remuneration for emission value > limit value | 0,67 € per km (without chauffeur) / 0,96 € per km (with chauffeur) | |||
| "Mini" remuneration for emission value <= limit value | 0,50 € per km (without chauffeur) / 0,72 € per km (with chauffeur) | |||
| Non-cash remuneration with emission value = 0 g/km | Non-monetary remuneration value = 0 | |||
3. No remuneration in kind for charging e-vehicles
According to a planned amendment to the Ordinance on Non-Cash Remuneration (Sachbezugswerte-VO) (draft assessment dated 8.11.2022), it is planned that from 2023 no non-cash remuneration is to be recognised,
- if the employer reimburses or bears the charging costs incurred at other charging stations and/or
- employees can also charge non-employer-owned vehicles at the employer's premises free of charge.
If the employer reimburses or bears the costs for the acquisition of a charging station for company cars at the employee's premises, only the value exceeding € 2,000 is to be recognised as remuneration in kind.
The final version of the Non-Cash Remuneration Regulation remains to be seen.
4. Carsharing
If car sharing platforms are used by employees, subsidies from the company for the private use of emission-free vehicles (e-cars, but also e-bikes or e-scooters) can be made tax-free up to an amount of € 200 per year from 2023:
- The prerequisite is that the subsidy is paid directly to the car sharing provider or in the form of vouchers to the employees (status of government bill Expensing Relief Package Part II).
- The subsidy is also exempt from non-wage labour costs (DB, DZ and municipal tax). According to the government bill, however, there is - at present - no exemption from social insurance.
The assumption of the costs of business trips is not taxable for the employee.
5. Investment allowance NEW (§ 11 EStG in the version of the ÖkoStRefG 2022 Part I)
Entrepreneurs (e.g. sole proprietors, co-entrepreneurs, limited liability companies) can claim an investment allowance for the acquisition of certain assets from 1 January 2023:
- For assets whose acquisition or production is to be assigned to the area of greening - thus also for e-vehicles - 15% of the acquisition costs (maximum of € 1,000,000 in the business year, in the short business year on a pro rata basis) can be claimed as additional business expenses for tax purposes.
- For other assets (with exceptions), the investment amount is 10% of the acquisition costs.
- Expressly excluded are e.g. cars and trucks with combustion engines (due to the use of fossil fuels) and second-hand assets.
- General requirements for the investment amount are that the normal useful life of the asset is at least 4 years and that it is used in a domestic business or a domestic permanent establishment.