Car Allowance first timer

1 post in this topic

Hey folks,


first timer here, and a first timer also on German car allowance/company car schemes.


I've spent the better part of the past couple of hours trying to understand the rules/regulations,

got unfortunately more confused as a result, hence this post.


My current working situation:


- I currently don't own a car;

- My current job position does not offer any car benefits;


I've recently been offered a job that includes a car allowance. Here are the details:


- the car allowance is said to be EUR 6600 annually;

- the position is said to be fully remote;


So, here come the questions, and apologies for the greenish/noobish nature of them, it's just my thought process understands the complex things easier,

but trips on the fundamentals usually.


1. This amount (6600) is most likely before taxes. How is this amount taxed?

I've read that it's just added to your base salary amount, then just taxed as is (Steuerklasse etc),

but wanted to have a confirmation.


2. What would be the amount (6600) after taxes exactly? Based on the type (car allowance)

what is this allowance normally intended to cover? (insurance costs, maintenance, etc?)


3. I'm well aware that more is always better,

but how does this sum actually size up in the current market?


4. Say I purchase a vehicle, be it leased or used or new, would this vehicle be considered a private car that I use for business purposes,

in which case would the allowance be intended to ideally cover only the 'business' costs/travels?


4a. In this case, which rule would apply (1% of the vehicle price+30cents for business use for taxation purposes?)


Hope everyone has a peaceful holiday season and thanks upfront for any responses, to which I'll be sure to develop the topic further!



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