--- title: New car tax - who does it affect and what to keep in mind? date: 2017-11-30T14:30:58Z modified: 2024-06-09T18:17:09Z permalink: &quot;https://grow.ee/uus-automaks-keda-see-mojutab-ja-mida-silmas-pidada/&quot; type: post status: publish excerpt: While some of the tax changes related to cars entered into force in the middle of this year, significant changes will apply from January 1, 2018. wpid: 4824 featured_image: &quot;https://grow.ee/wp-content/uploads/2017/11/94d68930-d322-11ed-be48-adc80022e551.jpg&quot; timestamp: 2024-06-09T18:17:09Z tags: - Taxes --- It is clear to people who are at least a little familiar with economics and accounting that **2018 is a year of changes**. One of the most widely reported changes at the moment is related to the use of company cars. In this post, we will provide an overview of **what exactly is changing**. ## Car tax or car fringe benefit tax While some of the tax changes related to cars entered into force in the middle of this year, **significant changes will apply from January 1, 2018**. Among other things, the following new rules will come into effect: - a new car tax, or **special car tax**, will apply to company cars - keeping a driving logbook for cars in mixed use will disappear. But what is mixed use of cars? This is a situation where an M1 category passenger car owned by the employer is also used for private trips. It is important to note here that the **Road Administration** must be notified if private trips are not made with the company car**.** From now on, everyone will be able to check from the traffic register whether the car is allowed to be used for private trips. Kilometres will be replaced by kilowatts. As mentioned earlier, keeping a driving logbook based on kilometres will disappear. This will be replaced by a calculation based on engine power, or **kilowatts**. The only option for private trips will be a kilowatt-based calculation of the tax base. However, the **rate of this special tax is not the same for all cars** – for cars under 5 years old it is 1.96€/kW and for older cars it is 1.47€/kW. However, it should be noted that these numbers are not subject to payment – income and social tax must still be calculated from them. The government, which recently celebrated its first year in power, has been diligently making changes and several of them will be implemented next year ([for example, VAT liability](/?p=4786)). ## Grow calculates everything related to car tax for you! You can get a quick overview of what the car tax will be for a specific car using Grow&#039;s **new car tax calculator**. However, if you have a lot of cars and would like to discuss this in more detail, please contact us at <info@grow.ee> või helista numbril 5629 3090. Aitame sind kõigega, mis raamatupidamisse puutuda võib!