The Royal Decree implementing 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 in the Official Gazette on 13 December 2021.
For income year 2022, the following CO2 emission will be applied to the above taxable benefit in kind:
- Petrol, LPG or natural gas cars: 91 g CO2/km (instead of 102 g CO2/km for income year 2021)
- Diesel cars: 75 g CO2/km (instead of 84 g CO2/km for income year 2021)
The decrease of the reference CO2-emission this year is substantial. The increasing popularity of hybrid and electric cars results in a lower average emission of all cars driving in Belgium. Please be aware that, the lower the CO2-reference, the higher your taxable benefit in kind will be for CO2 emission cars.
Please note that the minimum taxable benefit in kind for a company car (i.e. EUR 1.370 for income year 2021) has not yet been communicated for income year 2022. 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 2022 and the corresponding benefit in kind should already be processed in the January payrolls.