21 January 2026 Pay and Benefits Company Car for Mixed Use: Full Taxation on Costs Exceeding the Fringe Benefit Value Revenue Agency
A company introduced a new policy for the assignment of company cars for mixed use to managerial staff, under which the employee contributes in full to the cost of the vehicle. In particular, in addition to a monthly deduction equal to the conventional fringe benefit value, the employer arranged for the remaining leasing cost to be charged against the variable pay due to the worker. The Revenue Agency clarified that a worker may reduce the fringe benefit value to zero by means of monthly deductions corresponding to the conventional value determined under the flat-rate criteria applicable to mixed-use vehicles. However, additional amounts charged to the worker to cover the residual cost borne by the company cannot reduce the taxable base. It follows that such amounts must be withheld from net variable pay and remain fiscally relevant for the purposes of determining employment income. The ruling reaffirms the general principle of the all-inclusive nature of taxable remuneration, limiting the tax neutralisation effect to deductions referable solely to the conventional value of the benefit.
