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International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 14:22

Estonians registering company cars in own name as tax regulations change

BC, Tallinn, 23.01.2018.Print version
Tax changes with regard to company cars in 2018 that took effect at the turn of the year have prompted many people in Estonia to re-register company cars in their own name, Eesti Paevaleht said, cites LETA/BNS.

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.






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