The Renting Benefit allows employees to have a vehicle for a monthly fee that includes insurance, maintenance, and fees.
This benefit has advantages for the employee, such as:
- A lower fee thanks to collective negotiation of the renting price.
- No taxes are paid on the full fee, so a portion is exempt. Only a portion of the renting amount must be included in the payroll under the concept of IRPF; the rest is non-taxable and represents a tax saving.
- The employee does not pay VAT on the non-private part of the fee in any concept, which also represents a saving.
Limits and tax exemptions
If you use the vehicle exclusively for work, the company will cover the cost of it and it will not be considered as part of the salary, but rather an expense of the company.
However, if the car stays in your parking spot instead of the company's, it is considered an additional benefit (in-kind salary) since you use it for personal purposes. In this case, a calculation is made to determine how much time you use the car for work and how much for personal use.
It is important to note that this benefit, known as in-kind salary, is not exempt from taxes. Despite this, you will not have to pay taxes on the total value of the car. Instead, only tax will be applied to the difference between what is taxable and the total fee of the car.
💡 For example: Let's say the renting fee is 400€, but only 250€ is taxable in the payroll. Therefore, the employee would not be paying taxes on the remaining 150€. Those 150€ would be considered like any other exempt Flexible Remuneration consumption, which means that the worker would save the corresponding taxes for that amount.
ℹ️ The calculation of what must be taxed takes into account the vehicle's energy percentage, so the more efficient the vehicle, the greater the savings.
In Navarra, employees must pay taxes on the total renting fee, since there is no tax exemption. However, employees can benefit from collective prices, which allows them to rent products at lower prices.
In the Basque Country, the cost of renting for the company is the same as the cost attributable to the employee. If the employee uses the rental for private purposes, the amount they must pay is reduced by 50%. Therefore, 50% of the cost of renting would be tax-free for the worker.
How to activate the benefit
To activate the benefit, simply click on the "Activate benefit" button.
Once you activate it, the personnel assigned to that group of employees will be able to use the Renting Benefit and start making requests.