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Car allowance tax taken in cash ?.  

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Alex Sunny
3 Messages

Hors ligne

Il y a 3 ans   

Hello,

 

If you choose to take the cash equivalent rather than the company car leasing allowance offered by your employer, is this cash added to the gross and taxed in the same way as the gross salary already received?

 

thanks

alexsunny


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Thomas WILMEN
48 Messages

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Il y a 3 ans   

Nope. It will be taxed like cash bonuses.


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sbulux
44 Messages

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Il y a 3 ans   

not true, it will be added to your gross salary and simply taxed as if you had a salary increase.


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Thomas WILMEN
48 Messages

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Il y a 3 ans   

It depends. Some employer pay the car allowance in a one shot payment as a bonus. And you are taxed as such.


Illustration du profil de
Luxouriant
162 Messages

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Il y a 3 ans   

At the end of the day, it comes to the same result. Just as an example, if you are paid 50k, you will be taxed at 20%, if your gross salary is increased by 10k due to car allowance in cash, your extra salary will be subject to marginal taxation (higer range rate).

You could obtain a pretty good estimate with the BDO salary calculator. The one from lesfrontaliers doesn't work very well.


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Utopiapolis
16 Messages

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Il y a 3 ans   

Agree with Luxouriant - end result is the same, whether this is taxed as bonus or taxed with your salary. 

Added as bonus = taxed at marginal rate at once

Added as part of the salary payslip, taxed at average rate (but cumulated to the end of year = taxed at marginal)

 


Illustration du profil de
Alex Sunny
3 Messages

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Il y a 3 ans   
Posté par: Alex Sunny

Hello,

 

If you choose to take the cash equivalent rather than the company car leasing allowance offered by your employer, is this cash added to the gross and taxed in the same way as the gross salary already received?

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thanks

alexsunny

 

thanks my issue has been fixed.