Benefit in kind – Private use of a company car: updated formula for 2020


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 11 December 2019 (Royal Decree of 3 December 2019).

For income year 2020, the following CO2 emission will be applied to the above taxable benefit in kind:

  • Petrol, LPG or natural gas cars: 111 g CO2/km (instead of 107 g CO2/km for income year 2019)
  • Diesel cars: 91 g CO2/km (instead of 88 g CO2/km for income year 2019)

Please note that the minimum taxable benefit in kind for a company car (i.e. EUR 1.340 for income year 2019) has not yet been published for income year 2020. 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 2020 and the corresponding benefit in kind should already be processed in the January payrolls.

Due to this change the taxable benefit in kind will decrease, which will result in a slightly lower tax charge in income year 2020 compared to income year 2019. For company cars that were already registered prior to 2020, the yearly age reduction (6% of the catalogue value of the company car) will be applied in the course of 2020 which will then further decrease the taxable benefit.

 

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