Periodic distribution of a special lease payment as part of the calculation of the total annual vehicle cost

January 30, 2025

A sales representative leased a car and made a special lease payment of EUR 15,000.00 in December 2018. The employee kept a logbook for 2018 and claimed the full amount of the lease payment for the part used for business purposes. He claimed a total of EUR 15,763 in travel expenses as income-related expenses.

The tax office, on the other hand, took the view that the special lease payment should be recognised for tax purposes over the entire term of the lease.

This view was confirmed by the Federal Court of Finance in its ruling of 21 November 2024 (VI R 9/22). This decision is in line with the ruling of the Eighth Senate (VIII 1/21), which took the same view for the business use of a car.

In order to determine the actual costs for other business trips, a special leasing payment is to be distributed over the individual assessment periods during the term of the leasing contract on an accrual basis.