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Company car

If your employer has provided you with a company car and you use it for private purposes, you will have to pay tax on it.

New rules on company cars took effect on 1 July 2021 and the result is that the value of the company car should be calculated according to new rates. You can see what the rules mean to you and your tax below under Calculating the value of your company car.

The rules are as follows:

  • The taxable amount is calculated as a percentage of the car’s value plus an environmental supplement.
  • How much you use the car has no effect on the tax.
  • Your employer ensures that this information is stated in your tax assessment notice, and thus that you pay the tax. You can see it on your payslip.
  • You should add the value of your company car and your salary and enter the total amount in field 201 in your preliminary income assessment (it is not already there) to include it in the calculation of your withholding rate and your personal allowance.
  • You are not entitled to a deduction for transport between home and work if you have a company car.

For further legal information in Danish see our legal guide .