Renting your car to supplement your income, is it really a good plan? In this tax reporting period, some homeowners have done their math and denounce an unfair tax system.
Enzo Montcenis protects his car like a jewel. For him, it is an additional source of income: he rents it out at least once a week, which allows him to earn around 200 euros per month. Savings, but also expenses, such as tire maintenance or washing, essential to have good grades in the application. On the other hand, at the time of paying the taxes, bad surprise: the account is not there any more.
Taxed even on commission
In 2020, Enzo rented his car 32 times and received just over 2,000 euros. However, the tax administration withholds 300 euros more. “It’s unfair, because in the end we ended up with additional bills for the vehicle, plus a tax from the taxes“, He laments. When a tenant pays 100 euros to rent the car, a commission of 30 euros is in fact withheld at source for the connection. The owner therefore only receives 70 euros. Taxes retain the initial sum of 100 euros. The owner is therefore also taxed on the commission.