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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.

 

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.

Tech tools provided by employers – new tax and social security treatment

The social security authorities are currently working on a new measure with respect to the valuation of the benefit in kind for private use of a PC, tablet, mobile phone and internet provided by employers to their employees. If employees receive a PC, tablet, mobile phone and/or an internet connection from their employer, social security […]

nicolas-de-limbourg-author

The social security authorities are currently working on a new measure with respect to the valuation of the benefit in kind for private use of a PC, tablet, mobile phone and internet provided by employers to their employees.

If employees receive a PC, tablet, mobile phone and/or an internet connection from their employer, social security contributions and individual income taxes will be due on these benefits in kind in case they are (partly) used by the employees for private purposes. In the past, there were no clear guidelines on how to value these benefits, and the social security and tax authorities’ positions were not aligned.

Based on the new measure, the social security authorities will value the benefit in kind on which social security contributions will be payable as follows:

  • PC: EUR 6.00 per month;
  • Tablet: EUR 3.00 per month;
  • Internet: EUR 5.00 per month for fixed and mobile internet;
  • Internet: EUR 2.00 per month for mobile internet only;
  • Mobile phone: EUR 12.50 per month (this includes the device, mobile telephony and mobile internet).

The maximum benefit in kind for internet will be EUR 5.00 per month per employee, regardless of the number of internet connections.

The tax authorities will most likely act in accordance with the social security authorities and will take into account the same value for the benefits in kind. This is yet subject to confirmation.

Additionally, the social security authorities will most likely adopt the position of the tax authorities regarding costs proper to the employer paid to employees in respect of teleworking. The tax authorities accept, under certain conditions, the tax-free reimbursement of a cost proper to the employer for an amount of EUR 20.00 per month for the business use of a private PC and for an amount of EUR 20.00 for the business use of a private internet connection.

The exact date of coming into force of the new measure is still unknown.