Using a company car for private purposes counts as what is known as income in kind. Since they form part of the person’s salary, such benefits are usually subject to compulsory OASI contributions up to a certain level. The Compensation Offices estimate this level – i.e. the income in kind subject to compulsory OASI contributions – on a case-by-case basis.
In the case of a company car used for private purposes, the Compensation Offices generally base their calculation on the assessment made by the tax authority. From this year at the latest, the calculation of the monthly income in kind (on which OASI contributions and tax must be paid) is based on a standard rate of 0.9% of the purchase price (excluding VAT).
Special provisions apply to leased vehicles. In such cases, please contact us for further information.