Taxation of Low-Emission Company Cars – How to Enter in Nugget?

With effect from July 1, 2022, employees in the Czech Republic can take advantage of preferential taxation for low-emission company cars used for private purposes, thanks to an amendment to § 6 paragraph 6 of Act No. 586/1992 Coll., on Income Taxes. This is another partial support that the Association of the Automotive Industry has long advocated for the development of clean mobility. You can find detailed information about this novelty, for example, here.

And what does this mean for Nugget users?

You will record the addition of a low-emission car as mentioned above in the same way as before, using the data field L4024 on the employee’s card under the tax tab. Here, you will enter the amount of 0.5% of the purchase price of the given motor vehicle. The L4024 field is linked to payroll component 5432 with the default name “1% of the motor vehicle price”. Please remember that the name of the payroll component is displayed on the employee’s payslip, which may be confusing for the affected group of employees. Therefore, we recommend changing the name of the payroll component to something like “Supplementary tax for the motor vehicle”.

You can find instructions on how to rename the payroll component here.

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