Additional taxable benefit for company car: how does it work?
Do you drive a company car? Then you may be wondering about additional taxable benefit. The use of a company car can be divided into business use and private use. Do you drive the car strictly for business purposes? Then you do not have to pay an additional taxable benefit. Do you drive more than 500 kilometers per year with your company car? Then you do have to pay an additional taxable benefit. Additional taxable benefit is a percentage of the list price (selling price). On Alpina.nl we explain everything about additional taxable benefit for a company car.
Additional taxable benefit for company car 2021
In 2021, there are two rates for the additional tax: 12% and 22%. How much additional tax you pay depends on the CO2 emission of your car. These emission limits are determined each year. In 2017, the additional taxable benefit rate was lowered from 25% to 22%. However, is your car registered for the first time before 2017? Then the 25% additional taxable benefit will continue to apply to your car.
The table below shows the addition percentage for 2021. This table applies to cars with a date of first entry in 2021. In 2021, only cars without CO2 emissions fall into the 12% addition category. The reduced rate applies to hydrogen-powered cars. For zero emission cars that do not run on hydrogen, the 12% addition will only apply up to and including a catalogue value of €40,000.
| Category | CO2 emissions in grams per kilometre |
|---|---|
| 12% additional tax rate | 0 |
| 22% additional tax rate | more than 0 |
How can I calculate the additional taxable benefit for my company car?
Let us assume an addition rate of 22%. To calculate the gross addition for your company car, you can use the following sum:
Original catalogue price + VAT + BPM x 0.22.
Please note that this is the gross addition for your company car. How much net addition you pay also depends on your income. In some cases, a lower addition applies. The time of first use of the company car is always taken into consideration. The addition rates apply for 5 years.
Frequently asked questions about additional tax liability for a company car
My company car is over 15 years old. What is the additional taxable benefit?
Is your company car older than 15 years? Then an addition of 35% of the daily value applies, not the list price.
I drive less than 500 kilometres per year for private purposes with my company car. Do I have to pay an additional taxable benefit?
If you have a company car that you only drive for business purposes, then you have 500 kilometres per year that you can drive for private purposes. That way, you can make a quick trip to the supermarket. It is important to keep all private kilometres in your administration. These kilometres must be reported to the tax authorities. Do you exceed the 500 kilometres? Then you risk a fine if you do not report it to the tax authorities.
I have a one-man business. What about additional taxable income for a company car?
If your company pays the costs of a car, it is called a company car. Do you use the car for private journeys as well? Then you must pay an additional taxable benefit. This is seen as a salary, and therefore tax must be paid on the benefit that you have because you can drive in the car privately.
Can I buy off an additional company car?
With some company cars, like vans, it happens regularly that they are alternately used by different employees. To prevent each employee from having to pay the additional tax liability individually, the employer can also buy off the additional tax liability. This means that the employer pays €300 final tax levy per delivery van per year. It must be a van that, due to the nature of the work, is continuously used by two or more employees in alternating years, making it difficult to determine whether and to whom the company car has been made available for private purposes. In this case, the employees do not have to pay an addition to income and no kilometre records need to be kept.
What about the additional tax liability if my company car has a grey registration number?
A car with a grey registration plate has many advantages. For example, you get a discount on motor vehicle tax and, when buying the car, you do not owe BPM. This results in a considerable saving on taxes. Do you have a car with a grey license plate as a company car? Then you are probably wondering about the additional tax liability. For a company car with a grey license plate, the same rules apply as for a regular company car regarding the additional taxable benefit. The additional tax is determined on the basis of emissions.
The additional tax liability is calculated on the basis of the catalogue value, just like a regular company car. Is the car with grey license plate registered before 1 July 2005? Then the addition is calculated over the purchase price including VAT, but excluding BPM. Is the car older than 15 years? Then there is an addition of 35% over the daily value, not the list price.
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