Company "Car Benefit" – Not What You Think

Many employees view a company car as an attractive perk, but the reality can be less rewarding than it seems. In Israel, the benefit value (known as "Shovi Shimush") that appears on your payslip is considered taxable income. This means that even though the company provides the car, the employee is required to pay income tax and National Insurance on its assessed value. In some cases, employees who rarely use their company car for personal purposes end up paying unnecessary taxes on an amount that doesn’t reflect their actual use.It’s worth evaluating whether a company car truly fits your needs — in some situations, choosing a monthly travel allowance instead of a company vehicle may be a more cost-effective option.