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TI 2011100/3Tinbergen Institute Discussion PaperDistortionary Company Car Taxation:
Deadweight Losses through
Increased Car Ownership N. van Domain*
Eva GutirreziPuigarnauFaculty of Economics and
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What is distortionary company car taxation?
Distortionary company car taxation is a tax imposed on the benefit employees receive from using a company car for personal use, in order to discourage excessive use of company cars.
Who is required to file distortionary company car taxation?
Employers are typically required to file distortionary company car taxation on behalf of their employees who receive the benefit of using a company car for personal use.
How to fill out distortionary company car taxation?
Distortionary company car taxation can usually be filled out using tax forms provided by the relevant tax authorities, and requires reporting the value of the benefit received from using the company car.
What is the purpose of distortionary company car taxation?
The purpose of distortionary company car taxation is to reduce the tax advantage of providing company cars for personal use, and to encourage more environmentally friendly transport options.
What information must be reported on distortionary company car taxation?
Information that must be reported on distortionary company car taxation typically includes the value of the benefit received from using the company car, the distance traveled for personal use, and any fuel provided by the employer.
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