Benefit in kind
Net effect on income tax (1)
Solidarity contribution (CO2-tax) (2)
Corporation tax on disallowed expenses
Total employer's costs
(1) Marginal tax rate of 50% plus 7,5% municipal tax and after deduction of exemption amount (employees only).
(2) Applicable only if the beneficiary is subject to the Belgian social security (employee).
Benefit In Kind calculation for company cars
When a car is provided by an employer to an employee or director and the beneficiary also uses the car for private purposes a taxable benefit in kind is generated. This benefit in kind is subject to withholding taxes. The taxable value of the benefit is added to the taxable remuneration, the total is subject to withholding taxes. Benefits in kind are normally taxed on their market value. With regard to company provided cars the value is determined on a lump sum basis.
As of January 1, 2012 the taxable benefit is determined based on the catalogue value and the CO2 emission of the car. As of May 1, 2012 the benefit is amortized based on the age of the car. Per year the taxable benefit is reduced with 6% (with a maximum reduction of 30%, i.e. as of 5 years). The catalogue value is the actual value of the new car including the price of the options and the actually paid VAT. Discounts are not to be taken into account. However, promotional discounts which are published and applicable to everyone can be taken into account. As of January 1, 2017 the disallowed expense amounts to 40% instead of 17% in case the employer intervenes in the fuel costs and/or provides a fuel card.
For purely electric cars, the benefit is always calculated at 4% of the catalogue value.
For hybrid cars with a battery capacity of less than 0.6 kWh per 100 kilograms of car weight purchased after 1 January 2018, the benefit will be calculated from 2020 on the CO2 emissions of the corresponding petrol or diesel model.
- The reference emissions have been decreased from 75 g/km to 67 g/km for diesel cars and from 91 g/km to 82 g/km for petrol or gas-powered cars.
- The minimum amount for the benefit in kind has been raised from EUR 1,370 to EUR 1,540 per year.
- The commuting exemption has been increased from EUR 420 to EUR 470 per year.
- The indexation coefficient for the solidarity contribution has been increased from 1.3525 to 1.5046.
Catalogue value x age ratio x (5,5 + (0,1 x (CO2-emission - reference emission))) x 6/7
This calculator is based on article 39 and article 47 of the law of 28th decembre 2011 as published in the Belgian Monitor of 30th decembre 2011 and thereafter modified by the law of 29th march 2012.
Grant Thornton strives for maximum reliability of the information mentioned in this calculator. Users acknowledge that Grant Thornton can in no way be held liable for possible damage which might arise either directly or indirectly from any mistake that might appear in this calculator.