Benefit in kind – Private use of a company car: updated formula for 2021


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 communicated on 15 December 2020 (a Royal Decree will follow as soon as possible).

For income year 2021, the following CO2 emission will be applied to the above taxable benefit in kind:

  • Petrol, LPG or natural gas cars: 102 g CO2/km (instead of 111 g CO2/km for income year 2020)
  • Diesel cars: 84 g CO2/km (instead of 91 g CO2/km for income year 2020)

Please note that the minimum taxable benefit in kind for a company car (i.e. EUR 1.360 for income year 2020) has not yet been communicated for income year 2021. 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 2021 and the corresponding benefit in kind should already be processed in the January payrolls.