Company car

Company car

Before providing a lease car to employees, it's important to think through a number of matters. Can the employee also drive it for personal use? How should you document personal use? And what taxable benefit applies if you offer multiple company cars or a vehicle imported from abroad?

Clear agreements with your employees are essential. Be sure to document the following:

• which car the employee will have at their disposal;
• which taxable benefit applies;
• how the employee is expected to use the car (e.g. mileage tracking and careful driving);
• whether the employee must contribute toward personal use;
• when the car must be returned (for example, in the event of illness, disability, or termination);
• the consequences of non-compliance, for example who bears the cost of back taxes?

Clear agreements help you prevent unnecessary misunderstandings or disputes with employees.