E-mobility: Benefits for employees and tax reductions for employers

Current legislation makes it possible for companies to provide their employees with additional benefits in the area of e-mobility. But what are thestatutory amendments and how can they be used in practice?

Especially in challenging times like these, employers can position themselves competitively with additional benefits, which are an important component of attractive compensation packages. Due to the climate crisis, the trend towards sustainability and environmental protection is continuously increasing. Consequently, the promotion of sustainable mobility models and the use of clean energy are gaining in importance. Younger generations in particular are attaching increasing importance to this and want their employers to give sustainability a high priority within the company.

Benefits in the area of e-mobility

In the context of employer attractiveness and contemporary employer branding, employers are increasingly focusing on environmental aspects in their range of benefits, which are supported by legislation in a tax-friendly or tax-exempt manner. These include, for example, the provision of electric means of transport (cars, bicycles, scooters, etc.), the charging of these or subsidies for car sharing. Since 1.1.2023, there have been further statutory amendments in this area:

Salary conversion

For e-cars , a non-cash remuneration of zero is applied. This also applies to other means of transport, such as e-bicycles, which are provided as part of a (temporary or permanent) conversion of gross remuneration granted under a collective agreement. This was also anchored in the Non-Cash Remuneration Regulation (SachbezugswerteVO) as of January 1, 2023. Since the contributory assessment in § 50 ASVG is linked to the wage tax assessment in the Non-Cash Remuneration Regulation (SachbezugswerteVO), the salary component affected by the conversion is now also no longer subject to contributions.

Practical tip: However, care must always be taken to ensure that only the salary components granted above the collective bargaining agreement are converted; otherwise , tax-favored treatment is not permitted and there is a high risk of penalties under the Wage and Social Dumping Act (Lohn- und Sozialdumping-Bekämpfungsgesetz, LSD-BG).

Note: The Federal Ministry of Finance recently published information regarding wage tax issues in connection with the transfer of company bicycles and a salary conversion.

Tax free charging of electric cars

For charging electric cars at the employer´s premises for free, there is no non-cash remuneration to be considered. This now applies to both employer-owned and employee-owned electric cars. In addition, the tax benefit of reimbursing or bearing the costs of charging an employer-owned (but not employee-owned) e-car has now also been defined in the Non-Cash Remuneration Regulation (SachbezugswerteVO). The prerequisite for this is that the costs for charging at a public charging station are proven or that the charging device used by the employee ensures the allocation of the charging amount of the employer-owned e-car and that a specified electricity price of 22.247 cents/kWh (2023) is used.

Practical tip: Until the end of 2025, a cost reimbursement of up to EUR 30 per month can be applied if the charging device used by the employee is demonstrably not able to allocate the charging amount of the employer-owned e-car.

Acquisition of a loading device

If an employer provides its employee with an employer-owned electric vehicle, no non-cash remuneration value is to be recognized for the costs of purchasing a charging device (so-called "wallbox") of up to EUR 2,000 as of January 1^st, 2023. Only a value in excess of this will result in a non-cash benefit from the employment relationship, for which a non-cash remuneration has to be considered.

Car sharing

In the context of car sharing platforms, allowances from the - employer for the use of electric vehicles for non-work-related journeys will be tax-free up to EUR 200 per calendar year as of January 1^st, 2023. Employers have to ensure that the allowance can only be used for electric vehicles by making a direct payment to the provider or providing corresponding vouchers.

Legal changes/statutory amendments regarding the ClimateTicket and commuter allowance

Not only in the field of e-mobility, but also generally in connection with the greening of mobility, an additional innovation for public transport was decided. The background to the change was that due to the tax-free assumption of costs or the tax-free reimbursement of costs by the employer for public transport tickets (KlimaTicket, 1-2-3-Ticket, Netzkarte, Streckenkarte, etc.), it was previously not possible to additionally take into account the lump-sum commuter allowance for commuters, as the respective tax benefits were mutually exclusive. With effect from 1.1.2023, this has been rectified with the result that the lump-sum commuter allowance can now be claimed (at least in part).

Let your employees decide for themselves!

Which benefits should be offered in the area of e-mobility? Depending on the employer branding strategy and the availability of financial and human resources, each company has to answer this question individually along the strategic alignment.

Practical tip: In view of the individualization trend in fringe benefits, a cafeteria system is a good idea in which employees can select benefits from predefined alternatives that meet their needs and preferences. For example, depending on the hierarchy level, a uniform budget framework can be offered in which employees can take advantage of various benefits such as public transport tickets like the JobTicket or ClimateTicket, e-car, e-bike and other additional benefits.

The associated administrative effort in human resources for managing the additional benefits should always be calculated in advance and, if necessary, external service providers should be used.