German and Austrian tax rules on company car benefits

In Germany, a growing tax‑planning method lets executives offset the monthly taxable benefit of a privately used company car by directing an equivalent amount into a corporate pension supply account (Versorgungskonto). The contribution is invested, turning the tax charge into long‑term retirement capital.

In Austria, the Federal Finance Court (Bundesfinanzgericht) clarified that each company car provided to an employee creates a separate taxable cash‑equivalent benefit. Employers must calculate a distinct Sachbezug for every vehicle, which can be reduced by half if a detailed mileage log shows limited private use. Electric cars with zero CO₂ emissions are exempt from the benefit altogether, and used‑car valuations are based on the original list price at first registration.