When a company car is put at the disposal of an employee, its private use triggers taxation as a benefit in kind (BIK). Private use includes all uses other than the business use. In other words, private use refers to use during evenings, weekends and holidays as well as commuting between home and the fixed place of work.
The laws of 28.12.2011 and 29.3.2012 have introduced major changes in the valuation rules of the company car BIK that entered into force on 1 January 2012 (see previous Headlines of 26 January and 16 April 2012 in this respect). The new valuation is no longer based on private kilometres but on the catalogue value and on the CO2 emissions of the car.
The tax authorities have just published their 4th FAQ on the subject since January 2012!
The new FAQ completes the previous one from April by adding numerous examples and covering new topics such as:
- the possibility to reduce the company car BIK in the case of a salary split, if the car is also used abroad;
- the valuation of option packs at the pack value instead of the sum of each option separately, under the condition that the pack is also available for individuals (not for “fleet” packs);
- the valuation of the catalogue value of the car in the case of a general promotion (applicable to all buyers) that is reflected in the price list (e.g. during motor show periods);
- more explanations on the determination of the catalogue value in specific cases;
With its 59 questions, this 4th FAQ illustrates again the complexity of the new valuation rule of the company car BIK. It certainly does not answer all open questions, and a future version is probably to be expected!
Link to the FAQ: French version | Dutch version