Fringe Benefit Car Calculator

How the calculation works

1. 1

   Enter the car's value and age

   Enter the car's value when new and its age in years, which determines the car use rate (17% or 10%).

2. 2

   Add maintenance and fuel

   Maintenance value and, if the employer pays for fuel, fuel value are each added at 3% or 5% of car value depending on the value band.

3. 3

   Apply the usage percentage

   The sum of all three elements is multiplied by a private-use percentage that increases with the car's value band, from 30% up to 60%.

Calculation formula

(Car use value + Maintenance value + Fuel value) × Private-use percentage

• •Car use value: 17% of car value (10% if over 6 years old). Maintenance/fuel value: 3% of car value if ≤€28,000, 5% if higher.
• •Private-use percentage rises from 30% to 60% as the car's value increases through five bands.

Worked example

An employee has a 2-year-old company car worth €20,000 when new, with the employer also paying for fuel.

Car use value

€1,360.00

Maintenance and fuel value

€480.00

Total fringe benefit

€1,840.00

The three elements (car use €1,360.00, maintenance €240.00, fuel €240.00) sum to €1,840.00 after applying the 40% private-use percentage for this value band.

Fringe benefit elements and private-use bands

Fringe Benefits Rules, S.L. 123.55.

Source: Commissioner for Revenue (Malta) fringe benefits guidelines, as summarised by CCPS Malta

Eligibility

Car provided for private use

The fringe benefit applies when a company car is made available for the employee's private use, valued under the Fringe Benefits Rules (S.L. 123.55).

Age-based reduction

If the car is more than 6 years old (from year of registration), the car use rate falls from 17% to 10% of the car's value.

Frequently asked questions

How is the car fringe benefit calculated in Malta?

It is calculated as the sum of a car use value (17% of car value, or 10% if over 6 years old), a maintenance value (3% or 5% of car value) and, if the employer pays for fuel, a fuel value (same bands), all multiplied by a private-use percentage that rises with the car's value.

Does the age of the car matter?

Yes, the car use element drops from 17% to 10% of the car's value once the car is more than 6 years old from its year of registration, reducing the overall fringe benefit.

What if the employer doesn't pay for fuel?

If the employer does not pay for the employee's fuel, the fuel value element is excluded entirely from the calculation, leaving only the car use and maintenance values before the usage percentage is applied.

Are vans exempt from this fringe benefit?

Yes, goods vehicles with no passenger seating beyond the driver's seat generate no taxable fringe benefit at all under the Fringe Benefits Rules, unlike ordinary passenger cars.