A company car is a car that the employer makes available to an employee and that may be used privately. As this is considered a fringe benefit, it should subject to preferential tax treatment. The rules for company cars are detailed, and proper documentation - especially in the form of driving records - is crucial for correct taxation and the possibility of a reduced benefit value.

What is a preferential car?

A company car is basically a company car with private use. It can be used for both business and private purposes, such as driving to and from work, shopping or going on holiday.

When the car is used privately, it is considered a car benefit and taxed according to the rules of the Swedish Tax Agency.

The benefit amount is calculated at a flat rate by the Swedish Tax Agency and added as a value to the salary - which affects both income tax and employer contributions.

How the car benefit is calculated

The Swedish Tax Agency's model for calculating the benefit value is based on, among other things:

New car price
Additional equipment
Type of propellant
Environmental bonus (for electric cars, plug-in hybrids, etc.)
Age (value drops after 6 years of age)

For 2025, the preferential value of a typical new car is between SEK 4 000-8 000 per month depending on the model.

What about fuels?

If the employer also pays for fuel for private journeys with a company car (e.g. via a fuel card), a fuel benefit, to be taxed separately.

Again, it is important to be able to show how many kilometres were driven privately and how many were driven on business - otherwise the entire fuel can be counted as a private benefit.

Reduced benefit value - when is it possible?

The Swedish Tax Agency allows a reduction in the preferential value in certain cases:

If you drive more than 3 000 kilometres on business in a calendar year
→ The benefit value can be reduced by 25 %
If the car is used privately no more than 10 times a year and no more than 100 kilometres in total
→ The entire car benefit can be avoided (temporary use)

For these derogations to be authorised careful documentation - preferably in the form of a digital driving log clearly showing the date, purpose of the journey, distance and odometer reading.

What does the Swedish Tax Agency require for driving records?

Although there is no legal requirement for a driving licence, the Swedish Tax Agency requires clear documentation if you wish:

Avoiding car benefit (e.g. in case of limited private driving)
Get reduced benefit value (for high business mileage)
Accounting for fuel benefit correctly

The driving record should include:

Dates and times of travel
Start and end address
Purpose of the journey (business or private)
Meter reading at start and end
Number of kilometres driven
Driver's name (in case of shared car)

Benefits of the digital logbook for company cars

Keeping a manual logbook is not only time-consuming - it increases the risk of errors, missed journeys or invalid documents. A digital logbook provides both you as a driver and your employer with a safe and easy tool to comply with the rules.

8 strong benefits:

Automatic registration via GPS or vehicle module (OBD).
Clear division between business and private travel.
Basis for reduced preferential value (3 000-mile rule).
Correct fuel distribution - save money and taxes.
Protection in case of audit - the documentation is always complete.
Saving time for drivers and the finance department.
Cloud-based archiving - safely stored for at least 7 years.
Integration with accounting and payroll programmes.

Executive summary

A company car is an employee benefit that requires proper taxation. A digital driving record is the easiest way to:

Ensuring the right benefit value
Avoiding unnecessary costs
Accounting for travel and fuel correctly
Protect both employees and companies in the event of an audit

Do you want to make it easy to comply with the Swedish Tax Agency's rules?
Choose a digital driving record - for peace of mind, simplicity and full control.