Tag Archives: voitures société

Benefit in kind – Private use of a company car: updated formula for 2017

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 5 December 2016 (Royal Decree of 24 November 2016). For income year 2017, the following CO2 emission will be applied to the above […]

nicolas-de-limbourg-author

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 5 December 2016 (Royal Decree of 24 November 2016).

For income year 2017, the following CO2 emission will be applied to the above taxable benefit in kind:

  • Petrol, LPG or natural gas cars: 105 g CO2/km (instead of 107 g CO2/km for income year 2016).
  • Diesel cars: 87 g CO2/km (instead of 89 g CO2/km for income year 2016).

Please note that the minimum taxable benefit in kind for a company car (i.e. EUR 1.260 for income year 2016) has not yet been published for income year 2017. 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 2017 and the corresponding benefit in kind should already be processed in the January payrolls.

Due to this change the taxable benefit in kind will increase, which will result in a slightly higher tax charge in income year 2017 compared to income year 2016. This will especially be the case if the same company car would be registered for the first time in 2017 instead of 2016. For company cars that were already registered prior to 2017, the yearly age reduction (6% of the catalogue value of the company car) will be applied in the course of 2017 which will then decrease the taxable benefit.

 

New upcoming tax measures

Recently, the Belgian Minister of Finance published a general policy regarding “public finances”, “boosting of the economy/entrepreneurial climate” and “combat against tax fraud”. Based on this policy, certain new tax measures will be introduced in the upcoming months. From a personal income tax perspective, the following changes are anticipated: further increase in the withholding tax […]

nicolas-de-limbourg-author

Recently, the Belgian Minister of Finance published a general policy regarding “public finances”, “boosting of the economy/entrepreneurial climate” and “combat against tax fraud”. Based on this policy, certain new tax measures will be introduced in the upcoming months. From a personal income tax perspective, the following changes are anticipated:

  • further increase in the withholding tax rate on interest and dividend income, notably from 27% to 30% as of January, 1st 2017. Since January, 1st 2013, a uniform withholding tax rate of 25% was applicable, which was increased to 27% as of January, 1st 2016;
  • abolition of the speculation tax, which was introduced in the framework of the 2015 tax shift legislation. This tax is applicable as of January, 1st 2016 and amounts to 33% of the gains realised by individual taxpayers on the quick selling of listed stocks and certain stock exchange listed financial instruments (i.e. within a 6-month period following the purchase);
  • going forward, certain tax benefits (available to individual taxpayers) will only be granted to taxpayers who stayed in Belgium during a “minimum period”;
  • so-called “internal capital gains” (i.e. situations where individual taxpayers realise capital gains on shares by assigning their holding interests to a fully owned holding company) will become subject to specific tax audits. Moreover, new legislation will be implemented in this respect as of January, 1st 2017;
  • introduction of the so-called “mobility budget” in the course of 2017, which will allow employees to convert their current company car into a “budget” or to receive “additional net salary”. This system would be neutral from a cost and benefit perspective for the employers and the employees, but also from the budget perspective of the State. It would ‘as such’ not change the current tax regime for company cars.

Benefit in kind – Private use of a company car: Updated formula for 2016

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 Royal Decree of 9 December 2015. For income year 2016, the following CO2 emission will be applied to the above taxable benefit in […]

nicolas-de-limbourg-author

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 Royal Decree of 9 December 2015.

For income year 2016, the following CO2 emission will be applied to the above taxable benefit in kind:

  • Petrol, LPG or natural gas cars: 107 g CO2/km (instead of 110 g CO2/km for income year 2015).
  • Diesel cars: 89 g CO2/km (instead of 91 g CO2/km for income year 2015).

Please note that the minimum taxable benefit in kind for a company car (i.e. EUR 1.250 for income year 2015) has not yet been published for income year 2016.

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 2016 and the corresponding benefit in kind should already be processed in the January payrolls.

Due to this change the taxable benefit in kind will increase, which will result in a slightly higher tax charge in income year 2016 compared to income year 2015. This will especially be the case if the same company car would be registered for the first time in 2016 instead of 2015. For company cars that were already registered prior to 2016, the yearly age reduction (6% of the catalogue value of the company car) will be applied in the course of 2016 which will then decrease the taxable benefit.

Benefit in kind – Private use of a company car: Updated formula for 2015

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 Royal Decree dated 16 December 2014. For income year 2015, the reference CO2 emission for the above taxable benefit in kind is adapted […]

nicolas-de-limbourg-author

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 Royal Decree dated 16 December 2014.

For income year 2015, the reference CO2 emission for the above taxable benefit in kind is adapted as follows:

  • Petrol, LPG or natural gas cars: 110 g CO2/km (instead of 112 g C02/km for income year 2014)
  • Diesel cars: 91 g CO2/km (instead of 93 g C02/km for income year 2014)

Please note that the minimum taxable benefit in kind for a company car (i.e. EUR 1.250 for income year 2014) has not yet been published for income year 2015.

There are no further changes to the lump-sum valuation method for benefits in kind.

The above reference CO2 emission is effective as of 1 January 2015 and the corresponding benefit in kind should already be processed in the payrolls for January.

Due to this change, the taxable benefit in kind will slightly increase in income year 2015 compared to income year 2014.