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Taxation of a company car

Calculation of the benefit


The taxable benefit of the private use is a percentage of the list price of the car. The percentage depends on the CO2 emission of the car and when the car was first given a license plate. 

 

For 2015 the percentages are:

 

CO2-emission per kilometer Percentage of the list price
0 gram 4%
50 gram or less and more than 0 gram 7%
82 gram or less and more than 50 gram 14%
110 gram or less and more than 82 gram 20%
More than 110 gram 25%

 

From 2016 the rates for new cars will be:

 

CO2-emission per kilometer Percentage of the list price
0 gram 4%
50 gram or less and more than 0 gram 15%
106 gram or less and more than 50 gram 21%
More than 107 gram 25%

 

The 2016 percentages only apply to cars which were registered for the first time in 2016 (new cars). The percentages for existing leasecontracts will remain unchanged for up to 60 months from 1 January 2015.

 

Personal contribution for private use

 

Have you agreed with your employer that you pay a contribution for the private use? Then this contribution will be substracted from the taxable benefit. You only pay tax on such reduced benefit.

 

No taxable benefit in case of small private use

 

If you can prove that you drive less than 500 private kilometers per calendar year then your employer doesn't have to include a taxable benefit in the payroll administration. For this we advise you to keep a detailed record of all the trips with the company car mentioning the addresses you visit on which date including the start and end balance of the odometer. You will find a template attached. When you are sure that you will stay below 500 private kilometers in a calendar year you can request the tax authorities to issue a "Declaration no private use" which you can then hand over to your employer so that the taxable benefit for the company will not be calculated anymore. But make sure you keep that detailed registration for proof. The "Declaration no private use" can be requested with attached form (only available in Dutch). 

 

 

Attached Files (2)
Comments (2)
Comment by Julian Klepac on Sun, Aug 27th, 2017 at 8:13 AM
Hello what is the situation for 2018? The percentage is 22%? Am I right that the percentage applies each year? So for example, with new car costing 40000 Cost of car x 22% x your tax rate Year01 40000 x 22% x 40.8% = 3590 Year02 40000 x 22% x 40.8% = 3590 Year03 same Year04 same Year05 same Total tax over 5 years: 17590 or 44% or the car Seems a bit excessive. Depreciation of the car is not taken into account? Thanks
Comment by Arjan Enneman on Tue, Sep 26th, 2017 at 1:36 PM
For 2017-2020 the percentage is indeed 22% per year based on the original catalogue value of the car. This value is not depreciated over time, only after the car is older than 15 years.
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