Compute the benefit in kind for the private use of a company car
Please have a look at the principles below before making any computations (especially regarding the definition of the “catalogue value“). The computations below are provided for information purposes only and are based on the latest available figures.
Do not hesitate to contact us should you want us to assess the impact of the new rules on your entire fleet, for your employees and for the company, and to find alternative solutions.
The yearly benefit in kind on which the employee or company director is taxed is equal to 6/7th of the catalogue value of the car (to be understood as the list price of the car for a sale to an individual when it was new, including options and the actually paid VAT, but excluding any discounts and rebates), multiplied by a percentage linked to the car’s CO2 emission rate (the “taxable percentage”).
In addition, the benefit in kind takes into account the age of the car, by multiplying the catalogue value with a percentage in function of the age of the car (based on the first registration of the car). The benefit in kind decreases by 6% per annum, with a maximum of 30% decrease.
The base taxable percentage to apply to the catalogue value of the car is 5.5% for a diesel car with a CO2 emission rate of 93 g/km and for a petrol car with a CO2 emission rate of 112 g/km. This base taxable percentage of 5.5% is then increased/decreased by 0.1% for each CO2 gram/km above or below the CO2 emission thresholds of 93 g/km and 112 g/km (with a minimum percentage of 4% and a maximum percentage of 18%). In no circumstance can the benefit in kind be lower than EUR 1,250 per annum (amounts for income year 2014).