Změny ve zdanění nízkoemisních vozidel u zaměstnanců

Changes to the taxation of low-emission vehicles for employees

From 1 July 2022, an amendment to the Income Tax Act will come into force, which introduces a different method of taxation for low-emission vehicles provided to employees by their employer for business and private purposes.

In the case of the use of such vehicles, 1% of their acquisition price (incl. VAT) will no longer be considered taxable income, but only 0.5% of their acquisition price will be subject to tax for every month of use.

A low-emission vehicle means a road vehicle of category M1, M2 or N1 which does not exceed the CO2 emission limit of 50 g/km and 80 % of the emission limits for air pollutants in real operation as laid down in Annex I to Regulation (EC) No 715/2007 of the European Parliament and of the Council of 20 June 2007 on type-approval of motor vehicles with respect to emissions from light passenger cars and light commercial vehicles (Euro 5 and Euro 6), as amended.

Other cars that do not meet the above definition of a low emission vehicle will continue to be subject to a tax (and consequently to the social security and health insurance contributions) of 1% of the acquisition price.

Employers will need to take the change into account when processing payroll for July 2022 (which will occur in most cases in early August 2022).

The current law will still apply when calculating payroll for June 2022, i.e. taxing 1% of the acquisition price of vehicles used by employees for business and private purposes, regardless of the "type" of the vehicle.

For further information, please contact the authors of this article or your EY client team with whom you work.

Authors:

Jarmila Kozáková
Nikola Kafková