Fringe benefit taxes: How we calculate
Calculate fringe-benefit or company-car taxes.
How we calculate
Income tax = benefit value × 22/78. Social tax = 33% of the benefit value plus income tax. For private use of an employer’s car, the taxable value is €1.96 per kW per month, or €1.47 per kW per month for a car older than five years.
“Benefit valuation + taxes” does not always equal the employer’s actual expense. The calculator does not determine whether an expense is a fringe benefit or whether an exemption applies.
Worked example
Benefit value is €1,000. Income tax = 1,000 × 22/78 ≈ €282.05. Social tax = (1,000 + 282.05) × 33% ≈ €423.08. Taxes total €705.13; assessed benefit value plus taxes is €1,705.13. That last figure does not establish the employer’s actual cash expenditure.