Company Vehicle – Luxury Car Limit

If a company charges mileage allowances to clients in the course of its business activity, these payments must be recorded as taxable income.

If the vehicle used by the company is subject to a luxury car limit (“Luxustangente”), the charged mileage allowance may not be offset against the non-deductible portion of the vehicle costs resulting from this limit.

VwGH ruling of 29.01.2025, Ra 2024/15/0013