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Company car allowance

Taxation impact in Stockholm

skallurr
post 1.Jul.2018, 12:57 PM
Post #1
Joined: 1.Jul.2018

Hi,

I have a full time employment in Stockholm and my employer provides a company car for my job role. I can chose to avail a car or a cash allowance. The amount is 5100SEK/month and my base salary is 37200SEK/month.

I do not need a car in Stockholm and I am thinking of getting a cash allowance. How will it impact my taxation? Is it considered as a regular income?

How will it be taxed if I chose to go for a car?
If I select a car, I will definitely use it for personal use together with work. I will not get any compensation for fuel from employer.
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john.boy
post 1.Jul.2018, 08:56 PM
Post #2
Location: Stockholm county
Joined: 27.Sep.2017

If the company clearly mark it as a car allowance then it isn't so much the tax you should be considering but rather the pension contribution the company makes. Allowances are not considered as pensionable income, where-as a company car has a pensionable income equivalent that is taken into consideration when paying into the funds.

In addition to that, a company car (unless only used in work hours) is considered as a work-benefit, and a car allowance is not. This becomes relevant when serving out notice periods, the employer can stop paying an allowance, but cannot remove a work benefit until your last day.
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skallurr
post 2.Jul.2018, 06:29 PM
Post #3
Joined: 1.Jul.2018

Thank you for the response.

The company do call it as a car allowance. Hopefully it is considered for pensionable income.
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skyendra90
post 15.Jan.2019, 05:41 AM
Post #4
Location: Norrbotten
Joined: 15.Jan.2019

Thanks four your information.
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yet another brit
post 15.Jan.2019, 08:26 AM
Post #5
Joined: 5.Jan.2013

QUOTE (skallurr @ 2.Jul.2018, 06:29 PM) *
Thank you for the response. . The company do call it as a car allowance. Hopefully it is considered for pensionable income.



Unlikely, but check.

Also doesn't count towards SGI (salary used by F-kassan/A-kassan to calculate benefits)
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