Commercial driving in your own car can usually be deducted from the company's profits after actual expenses, or at the Tax Council's rates for this (2018 = DKK 3.54 per km.). Keep in mind that you must keep a driving record of professional driving. In addition, you can choose to have a free car provided and be taxed on it.
Deductions when choosing a car scheme
If you choose the free car scheme, the company can get a deduction for all costs including financing expenses on the car and tax depreciation, whereas taxation must be made on the free car, see the calculation basis under the link: limits and rates, employee benefits. Taxation of free car is done by increasing the taxable profit of the company by the value of the free car, and an equivalent amount is considered raised in the corporate scheme.
Whether in your situation it is best to drive your own car and get a deduction from the company for actual costs, or get a deduction for commercial driving at the rates of the Tax Council, or you choose to include the car in the company with tax on free car, depends on several factors. But it is always worth considering.
We do not accept responsibility for any dispositions that may be made on the basis of the above without prior individual advice. Likewise, we accept no responsibility for any errors and omissions.
Accounting- and taxconsultant
edj@skatteinform.dk