A third of luxury cars like Bentleys, Bugattis, Ferraris, Maseratis, and Lamborghinis registered in Estonia are listed as business vehicles. Although this does not necessarily denote personal use, Lamborghinis have the highest, and Maseratis the lowest, proportion of business registrations. By the end of June, out of 580 luxury cars from these five manufacturers, 174 (30%) were used for business. Madis Laas, Head Tax Auditor of the Estonian Tax and Customs Board (EMTA), stated that the luxury brand of a company car doesn’t infer its non-business use. Laas added that the use of any corporate car for private travel is subject to personal income tax and the deduction of VAT paid on its purchase is only partially allowed. According to the EMTA, a car’s capacity determines the tax rate for private travel. The private use of an employer’s vehicle is considered a fringe benefit, and the employer is responsible for paying income and social taxes on it.
Source: news.err.ee
