Tax Bill-Synopsis of Main Points
With the finalization of the tax bill, companies should focus on the following points which affect their corporate fleet ( vehicle selection, corporate taxation, income tax)
1. Company cars are tax deductible under the following conditions
- 70% of expenses for engine size up to 1600cc (Increase of 7.5% on the annual company cost)
- 35% of expenses for engine size 1601cc and over (Increase of 16.3% on the annual company cost)
2. Company cars are treated as Income
The use of company cars by the chairmen, members of the Board of Directors and/or managers and all employees is considered as employment income. The taxable income considered as employment income is a percentage of the Free On Board price* (FOB) of the first year of circulation for company cars (leased or owned) as follows:
- 15% * Vehicle FOB Price for cars priced €15,000-22,000
- 25% * Vehicle FOB Price for cars priced €22,001-30,000 and
- 30% * Vehicle FOB Price for cars priced higher than €30,001
Notes:
This measure has retroactive effect and comes to force from Jan 1st 2010.
It is valid for all company cars and all levels of hierarchy.
Company cars are considered as income regardless of whether the cars belong to the company or are leased under a contract.
3. Luxury Tax based on the vehicles’ CIF price
A special tax is imposed on luxury goods, which affects passenger cars & jeeps. The applicable rate of this “luxury tax”” for new cars and jeeps is calculated depending on their CIF price is
- 10% Vehicle CIF(2) for cars with an FOB(1) of €15,000-22,000
- 30% Vehicle CIF(2) for cars with an FOB(1) of €22,001-30,000
- 40% Vehicle CIF(2) for cars with an FOB(1) of higher than €30,001
Definitions
FOB: Free on Board = Manufacturer’s Price ( ETA in Greek )
CIF: Cost Insurance Freight = Price in the premises of the Dealer ( FOB + Insurance + Transportation of the vehicle to the premises of the dealer / importer.
FOB Price is given exclusively by the Importer