New tax rules for company cars

New tax rules for company cars



Zenegy's company car module


When your employer provides you with a company car there are a number of things both you and your employer must be aware of, including an enviromental surcharge and taxation. If an employee is provided with a company car, the company can register this in Zenegy's company car module. With Zenegy it is easy and manageable because we automatically collect all relevant information from the motor register and calculate the tax base on a monthly basis. 

From July 1st the legislation for taxation for company cars is changing and this entails a number of changes that you must be aware of. 

What is changing

One of the changes is that the current percentages of 25 % and 20 % for the calculation of taxable value based on the cars calculation basis of respectively under and over 300.000 DKK will change yearly until 2025. This means that the rate of taxation for a company car at 25 %, if the car's calculation basis is under 300.000 DKK, will be reduced by 0,5 % every year from 2021, and the rate of taxation for at company car at 20 %, if the car's calculation basis is over 300.000 DKK, will be increased with 0,5 % every year from 2021. This means that there will be a common rate of 22,5 % from the year 2025.

Overview of the changes


Enviromental surcharge

On July 1st 2021 the percentage for calculation the enviromental surcharge will change from the current 150 % to 250 %. Until the year 2025 this rate will increase every year until it reaches 700 %. The enviromental surcharge will increase for all types of cars and it is calculated based on the green property tax. 

The charging station

The value and fee for installing a charging station on an employee's private residence will be exempt from taxation from July 1st 2021. After an employee has had access to, and paid tax of, a company car for at least six months, it is possible for the company to transfer the charging station to the employee tax free. 

Everything happens automatically with Zenegy

You have to be aware of the new tax rules when you are runing the payroll in July.  However, with Zenegy you do not have to worry about all the changes. Zenegy will make sure that all the information is updated which means that all the changes will happen automatically for you, if you are using Zenegy's system.