1-% Rule

The basis is the List Price (Gross) as of the date of initial registration, rounded down to the nearest 100 euros. One percent of this amount is applied monthly as the Monetary Benefit (vehicle allowance). For trips between home and the primary place of work, 0.03% of the gross list price per kilometer of distance and per month is added.

Actual purchase costs, discounts, or used-car prices do not factor into the calculation. Even a vehicle purchased at a discount is valued at the list price.

Assume a vehicle has a gross list price of 45,000 euros, and the distance to the primary place of work is 20 kilometers.

This amount increases taxable income and is subject to income tax and social security contributions. For a qualifying electric vehicle, one-quarter of the tax base would be applied instead. This example is for illustrative purposes only and does not constitute tax advice.

When there is a high proportion of personal use and a low list price. Those who use the vehicle primarily for business purposes or drive an expensive car often find the Logbook (flat-rate allowance) more cost-effective, but must keep a record of every trip. The comparison is particularly worthwhile for vehicles above the mid-size class.

For electric vehicles, a reduced assessment under the 0,25-%-Rule (Electric Vehicle Tax) applies under certain conditions. This difference affects which vehicles are attractive under the Car Policy(Electric Vehicle Tax).

The method is determined on a per-vehicle basis and cannot be changed at will. To ensure payroll calculations are accurate, the fleet must be able to document the registration date, list price, and date of transfer for each vehicle.