Vehicle less than 36 months old when the leasing agreement is signed.
The taxable value of a free company car is calculated as 25% of that part of the value of the vehicle that does not exceed DKK 300,000 and 20% of the remainder. The taxable value is always calculated on the basis of at least DKK 160,000.
An environment tax is added to the taxable value for the company car equal to the annual environment ownership tax paid by vehicle owners, with an addition of 50%.
The value does not including the balancing allowance for diesel vehicles, nor is any allowance for private use included.
Where a vehicle is older than 36 months, the taxation is calculated from first registration and the employee is taxed on the new vehicle price. This taxation is to be applied for the first 36 months of the vehicle life.
From month 37, the taxable value is reduced to 75% of the new vehicle price, with a minimum of DKK 160,000. This value includes the environment tax mentioned above.
Vehicle more than 36 months old when the leasing agreement is signed.
Where a leasing agreement is commenced more than 36 months after the original vehicle registration, the employee will be taxed on the market value, this typically being the trade price of the vehicle.
As with newer vehicles, the taxation is augmented by an environment tax, whether the vehicle is leased or owned by the employer.