Taxation of car sharing

Is the rental income I receive from GoMore taxable?

Yes. What you earn by renting your car as an individual through GoMore is mainly considered as taxable capital income. In accordance with the DAC7 directive, GoMore reports the car owner's earnings directly to the Tax Administration, but the car owner must also report the income information to the tax authorities himself, as Verohallinto does not fill in the income information in the tax return. Read more about the topic here.

Guidance on the taxation of sharing economy services is provided on the Tax Administration’s website. Instructions can be found here and an illustrative example of peer-to-peer car sharing is described later in this article. 

The Ministry of Economic Affairs and Employment (MEAE) has compiled instructions regarding peer-to-peer car sharing and taxation on the jakamistalous.fi website. 

Where can I find a summary of the rental income I have received through GoMore?

An overview of your earnings can be found by following this path on our platform:

Select your profile picture from the top right corner -> Earnings. If you need more information on your income or have any questions about it, please contact GoMore Support. 

Can I deduct tax costs related to renting a private car?

Yes. According to the tax administration the main rule is that you can deduct the expenses that are incurred directly from earning income when renting your car. 

The following example is based on an example calculation provided by the Tax Administration on peer-to-peer renting of a privately owned car. Please note that the calculation is only an indication, and may vary from case to case. 

Liisa has used a transaction platform to rent out her car which is also in her own use. The car's purchase price was €26,000. In the past year, Liisa has paid €1,000 in mandatory insurance premiums and €350 for maintenance and testing.

Liisa has also rented the car for 50 days and received a total of €1,500 in rental income. The transaction platform provider takes 25% of Liisa's rental income as service fees.

Liisa can deduct the €375 of service fees from her rental income as expenses directly related to the rental operation. In addition, she can deduct the part of the insurance premiums and maintenance costs corresponding to the car's rental time. This deductible amount is €184.93 (= 50/365 x €1,350). Liisa cannot deduct any part of the car's purchase price, since the car is not primarily used for the production of income through rental operation. 

Please note that the Tax Administration assesses the main purpose of rental activity, i.e. whether the car is mainly in rental use (income-generating activity) or for private use (occasional rental income received from peer-to-peer car sharing). If the car is mainly used for private purposes, the costs associated with the purchase of the car can not be deducted as a general rule. On the other hand if the car is rented through a platform primarily for income-generating purposes, the car owner’s tax deduction rights are broader. You can find more information on this from the Tax Administration and the in-depth instructions regarding the taxation of rental income. 

How does it work if I rent my business’ car through GoMore?

If you rent your car through GoMore as an actual income-generating activity you can create a commercial owner profile on our service. You can constantly see your accrued rental profile on your profile, which you can then conveniently report to the tax authorities and calculate the relevant deductions from the expenses incurred. For business-owned cars GoMore will inform about the earnings directly to the Tax Administration as well.