Update of the company car benefit in kind formula for 2014

Written by Nicolas de Limbourg 29 January 2014


Update of the company car benefit in kind formula for 2014

Today a Royal Decree has been published that changes the formula used for determining the benefit in kind for company cars. It is dated 24 January 2014 and applies both to employees and company directors.

For income year 2014, the reference CO2 emission for the taxable benefit in kind for the private use of a company car is the following:

  • Petrol, LPG or natural gas cars: 112 g CO2/km (instead of 116 g C02/km for income year 2013)
  • Diesel cars: 93 g CO2/km (instead of 95 g C02/km for income year 2013 )

Due to this modification, the annual company car benefit in kind slightly increases for income year 2014 in comparison with the same taxable benefit for income year 2013.

Please note that the minimum taxable benefit in kind for the company car for income year 2014 is set at EUR 1.250,00.

The above modification is effective as of 1 January 2014. This may thus mean that given the publication date, changes need to be made to the payrolls already processed for January.

Please visit the 2014 updated PwC’s company car benefit in kind calculator to compute the benefit in kind for the private use of a company car in 2014.