Company car agreement

A template setting the rules for an employee's use of a company vehicle within the employment relationship — it governs the limits of work and personal use and the arrangements relating to fringe benefit tax.

Create this contract

The form and the finished contract are in English.

The sample shows one of the possible wordings. When you fill in the form, you choose the option that suits your situation.

What is this contract?

This document sets out how the employee uses the company vehicle — only for work or also for personal trips — and who bears the costs of fuel, insurance and maintenance. Allowing personal use has tax consequences, which is why the template deals with the type of use as a separate clause. Use it alongside the employment contract, not instead of it.

What the contract covers

  1. Parties
  2. Vehicle
  3. Type of use and taxation
  4. Terms of use
  5. Fuel and costs
  6. Insurance
  7. Maintenance and damage
  8. Return
  9. Duration of the contract and final provisions

Frequently asked questions

Does the agreement cover the taxation of personal use?

The template helps record whether and how personal use affects fringe benefit tax, but the tax calculation is done by the employer's accounting.

Does the agreement work for a manager without a company car?

No, the template assumes a specific vehicle owned by the company whose terms of use are agreed.

Do fuel and maintenance costs belong in the agreement?

Yes, they are fields to fill in according to what you agree.

Create this contract

The form and the finished contract are in English.

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