Benefit in kind – Private use of a company car: updated formula for 2018

Written by Nicolas de Limbourg 22 December 2017

The new reference CO2 emission for calculating the taxable benefit in kind for the private use of a company car in the hands of company directors and employees has been published on 19 December 2017 (Royal Decree of 13 December 2017).

For income year 2018, the following CO2 emission will be applied to the above taxable benefit in kind:

  • Petrol, LPG or natural gas cars: 105 g CO2/km (the same amount was applied for income year 2017).
  • Diesel cars: 86 g CO2/km (instead of 87 g CO2/km for income year 2017).

Please note that the minimum taxable benefit in kind for a company car (i.e. EUR 1.280 for income year 2017) has not yet been published for income year 2018. There are no further changes to the lump-sum valuation method for the benefit in kind.

The above reference CO2 emission is effective as of 1 January 2018 and the corresponding benefit in kind should already be processed in the January payrolls.

Due to this change the taxable benefit in kind will increase for diesel cars, which will result in a slightly higher tax charge in income year 2018 compared to income year 2017. This will especially be the case if the same company car would be registered for the first time in 2018 instead of 2017. For company cars that were already registered prior to 2018, the yearly age reduction (6% of the catalogue value of the company car) will be applied in the course of 2018 which will then decrease the taxable benefit.