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That is just wrong. You have to tax the 1% of the list price, 0,5% for hybrid and electric and 0,1% for ebikes and bikes. Also you don't have to pay the 45%. T

That is just wrong. You have to tax the 1% of the list price, 0,5% for hybrid and electric and 0,1% for ebikes and bikes. Also you don't have to pay the 45%. That is the highest tax bracket in the progessive system. So you have to put the 1% (1000€ for a really expensive car you probably only get as a CEO) and assume that as payout. And then you tax that. For a good car you normally are in the range of 300-500€ a month for normal employees and then you can even pay the gas which is a bigger benefit for most people. Also you don't have to pay taxes on unrealised gains, that is just bullshit. You have to pay taxes only when you realise those gains, e.g. when you pull the option and sell or keep the shares. As long as it is just options you don't have to pay anything. But with your level of tax knowledge I would also be scared of the bad bad Finanzamt. OwO

llampx 5y ago
Sorry, the parent comment is completely correct. Yes, exceptions exist, such as someone making 32k€ and given a hybrid/EV or e-bike as company car will not pay as much as an engineer making 80k€ and a diesel Passat. Otherwise, the comment is correct. Taxes are kind of insane in Germany. Stock options (or crypto) counted as regular income _are_ taxed at your marginal tax rate, which, for anyone making above 55k€ or so is either 42% or 45%. Can't be bothered to look it up.
volta83 5y ago
I said: > You have to pay 1% of the listing price of the car _per month_ in taxes (that's 1000$ per month in taxes for the employee if their company gives them a 100k$ car..). You said: > That is just wrong. You have to tax the 1% of the list price, [...] so you have to put the 1% (1000€ for a really expensive car Either we both are wrong, or we both are right, unless you are somehow using language in a super subtle way. EDIT: you are right and I'm wrong, sorry, you get 1% of the list price as if it were income, so you need to tax that, i.e., what you said is correct, 1% of the list price is taxed per month. With a 45% tax rate, for a 100k$ car, you need to tax 1k$ per month, and at 45% means you pay 450$ per month in taxes. > Also you don't have to pay taxes on unrealised gains, that is just bullshit. I work in Germany. I get stock every month. I don't sell the stock (gains are unrealized). I have to pay taxes for all the stock I get. I do pay the taxes for all my stock (my employer declares it as part of my income). Also, I've interviewed and gotten offer for some SV startups and they would have allowed me to work from Germany. Talked with 3 financial and tax advisors here, and they all said the same: stock options are part of the income, and just like the stock, they get taxed with your income tax. > Also you don't have to pay the 45%. Right, you only pay that if you make more than 50k brutto per year or so. For example, in an entry level job right after the university, e.g., as a PhD student working on a publicly funded project, you have to pay 45% taxes. > But with your level of tax knowledge I would also be scared of the bad bad Finanzamt. OwO lol after reading my reply, read also the other replies to your comment Tax evasion is a crime that you really don't want to commit in Germany. Arguing that "you didn't know" isn't really a defense.
- adwn 5y ago
  > Either we both are wrong, or we both are right [...] You said: "pay 1% of list price in taxes". They said: "pay taxes on 1% of list price". There's a difference. For example, given a 50k€ car and 35% marginal income tax rate, your version would result in 500€ additional income tax per month, while their version would result in 500€ * 35% = 175€ additional income tax.
  - volta83 5y ago
    Sorry, I made a mistake, I meant 1% of the list price is taxed (so you end up paying 0.45% per month of the list price).

llampx 5y ago

Sorry, the parent comment is completely correct. Yes, exceptions exist, such as someone making 32k€ and given a hybrid/EV or e-bike as company car will not pay as much as an engineer making 80k€ and a diesel Passat. Otherwise, the comment is correct. Taxes are kind of insane in Germany. Stock options (or crypto) counted as regular income _are_ taxed at your marginal tax rate, which, for anyone making above 55k€ or so is either 42% or 45%. Can't be bothered to look it up.

volta83 5y ago

I said: > You have to pay 1% of the listing price of the car _per month_ in taxes (that's 1000$ per month in taxes for the employee if their company gives them a 100k$ car..). You said: > That is just wrong. You have to tax the 1% of the list price, [...] so you have to put the 1% (1000€ for a really expensive car Either we both are wrong, or we both are right, unless you are somehow using language in a super subtle way. EDIT: you are right and I'm wrong, sorry, you get 1% of the list price as if it were income, so you need to tax that, i.e., what you said is correct, 1% of the list price is taxed per month. With a 45% tax rate, for a 100k$ car, you need to tax 1k$ per month, and at 45% means you pay 450$ per month in taxes. > Also you don't have to pay taxes on unrealised gains, that is just bullshit. I work in Germany. I get stock every month. I don't sell the stock (gains are unrealized). I have to pay taxes for all the stock I get. I do pay the taxes for all my stock (my employer declares it as part of my income). Also, I've interviewed and gotten offer for some SV startups and they would have allowed me to work from Germany. Talked with 3 financial and tax advisors here, and they all said the same: stock options are part of the income, and just like the stock, they get taxed with your income tax. > Also you don't have to pay the 45%. Right, you only pay that if you make more than 50k brutto per year or so. For example, in an entry level job right after the university, e.g., as a PhD student working on a publicly funded project, you have to pay 45% taxes. > But with your level of tax knowledge I would also be scared of the bad bad Finanzamt. OwO lol after reading my reply, read also the other replies to your comment Tax evasion is a crime that you really don't want to commit in Germany. Arguing that "you didn't know" isn't really a defense.

adwn 5y ago
> Either we both are wrong, or we both are right [...] You said: "pay 1% of list price in taxes". They said: "pay taxes on 1% of list price". There's a difference. For example, given a 50k€ car and 35% marginal income tax rate, your version would result in 500€ additional income tax per month, while their version would result in 500€ * 35% = 175€ additional income tax.
- volta83 5y ago
  Sorry, I made a mistake, I meant 1% of the list price is taxed (so you end up paying 0.45% per month of the list price).