Car market, Estonia, Legislation, Markets and Companies, Transport
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Friday, 29.03.2024, 14:22
Estonians registering company cars in own name as tax regulations change
During December, more than 4,000 company cars 4,000 were re-registered in
the name of private individuals, more than four times the usual number of such
registrations.
While current data for January is not available from the Road
Administration, it is known that the momentum of re-registration has not waned
and leasing companies are suffering under a heavy workload.
Luminor bank, for instance, has warned customers of its leasing arm who wish to change
the name of the lessee in a leasing contract that making the change may take up
to three months as a result of the big number of such applications. Swedbank
meanwhile says that where earlier the review of such applications took two to
three days, at present customers must reckon with a week-long wait.
The Road Administration said that there are no queues in their e-service to
register the purchase and sale of a motor vehicle.
Tax amendments valid from the beginning of the year introduced an engine
power based payment for the possibility of private use of a company car in
Estonia, eliminating the possibility to pay a smaller amount by keeping a log
of the use of the vehicle.