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A query was raised regarding whether the provision of vehicles to employees generates benefits in kind and how to value long-term renting contracts. The DGT ruled that income arises from the availability of the vehicle for private purposes and that, in renting arrangements, the valuation basis is the market value of the new vehicle at the time of contracting.
This ruling clarifies the tax implications for companies providing vehicles to staff, establishing that the mere availability for private use triggers a taxable benefit in kind, and provides a specific valuation method for renting contracts.
The tax team reviews your specific situation.
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