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Company Cars Cost Employees Thousands More Than Expected Due to Taxes
Israeli employees receiving company cars face significant taxes on the benefit, calculated based on the car's original list price and the employee's marginal tax bracket. The actual cost to the employee can be substantially higher than expected, sometimes exceeding 40% of the imputed benefit value.
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What happened
- 01Company cars are taxed as income, increasing employee tax burdens.
- 02Tax is based on original list price, not depreciated value.
- 03Employee's marginal tax bracket dramatically affects the net cost.
- 04Electric and hybrid vehicles receive tax reductions.
- 05Employees should compare car benefit cost to cash equivalent.
- 06Tax reform proposals for electric vehicles were recently dropped.
The coverage
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Who covered it
Only N12 so far. No other newsroom has reported it yet.