While the tax on the benefit in kind (BiK) for petrol or diesel-fuelled company cars already increased by 30% in five years, next year risks adding another 10% at once, De Tijd reports.
People who were given a company car by their employer and are allowed to also use it for private travel (including commuting to and from work) are taxed on it. The newer, more expensive and polluting a car is, the higher the tax.
The BiK is determined via a complex formula and is linked to the evolution of the average CO₂ emissions of newly registered cars. Over the past five year, the reference value used by the Finance Ministry to determine this tax increased by about 30% over the past five years.
Company cars make up the vast majority of newly registered cars and are becoming electric at a rapid pace, as a result of the greening of company car taxation. As the CO₂ emissions of electric cars are zero grams per kilometre, they reduce the average emissions of all newly registered cars.
Not yet final
This has significant implications for those still driving fossil-fuelled company cars: the lower the average emissions of all new cars, the higher the BiK tax on fossil-fuelled company cars.
For next year, the tax even threatens to rise by about 10%, De Tijd reports. Figures from the automobile industry federation Febiac show that the average emissions of all newly registered cars between 1 October 2023 and 30 September 2024 (the period over which the value is determined) fell sharply yet again.
However, the final CO2 coefficient for determining next year's BiK tax has not yet been set.
