Benefit in kind company car: CO2 emission reference for 2025

The CO2 emission reference applying in 2025 for the calculation of the benefit in kind of the private use of a company car by company directors and employees has been published by the FPS Finance.

CO2 emission reference for 2024 and 2025

For the income year 2025 (assessment year 2026) the CO2 emission reference has been determined as follows:

  • Petrol, LPG, or natural gas cars: 71 g/km
  • Diesel cars: 59 g/km

For the income year 2024 (assessment year 2025) the CO2 emission reference has previously been determined at:

  • Petrol, LPG, or natural gas cars: 78 g/km
  • Diesel cars: 65 g/km

 

How to calculate the benefit in kind?

Principle

The benefit in kind for the private use of a company car is calculated based on the gross list price of the vehicle and the CO2 emissions x age coefficient.

A fraction of 6/7 of this list price is to be multiplied by a coefficient, depending on the CO2 emissions of the vehicle.

The coefficient is determined at 5.5% in case of CO2 emissions of 65 g/km for a diesel car and 78 g/km for a petrol car or a car fuelled by LPG or natural gas. Per additional gram CO2/km more or less this coefficient is increased or decreased by 0.1%. The coefficient will never be less than 4% or more than 18%.

The CO2 emission reference is determined annually by Royal Decree.

More specifically, for income year 2024:

Car fuelled by LPG or natural gas Gross list price x [5,5 + ((CO2 emission - 71) x 0,1)]% x 6/7 x age coefficient
Diesel car Gross list price x [5,5 + ((CO2 emission - 59) x 0,1)]% x 6/7 x age coefficient
 

Electric cars

For electric cars, the benefit in kind is calculated as follows:

Gross list price x 4% x 6/7 x age coefficient (see below).

 

Hybrid cars

For Hybrid cars, the benefit in kind will be calculated based on the CO2 emissions, but for actual electric cars, the benefit is calculated based on 4%.

From 2020, to determine the CO2 emissions of so-called 'false hybrid cars' bought/leased as of 1 January 2018, the CO2 emissions of the corresponding model with only a combustion engine must be taken into account. If no corresponding model with only a classic engine exists, the CO2 emissions of the hybrid car need to be multiplied by 2,5.

A hybrid car is considered to be a 'false hybrid' when this rechargeable hybrid vehicle has a battery capacity of less than 0.5 kWh per 100kg vehicle weight or the the CO2 emissions exceed 50 g/km. The criteria to determine the corresponding model are published in Royal Decree dated 5 september 2019.

Rechargeable hybrid vehicle means a vehicle equipped with both a fuel engine and an electric battery that can be charged via a connection to an external energy source outside the vehicle.

The obligation to determine the corresponding model lies with the manufacturer or the importer. They deliver the information (including the comparison of all eligible types) at market launch to the tax authorities. The information for the existing models must be delivered before 20 April 2020.

The tax authorities have published this information: Bedrijfswagens | FOD Financiën (belgium.be) .


Age of the vehicle

The catalogue value is adapted based on the age of the vehicle. The catalogue value will then be decreased by 6% per year, but will never be less than 70%:

  • 0-12 months: 100%
  • 3-24 months: 94%
  • 25-36 months: 88%
  • 37-48 months: 82%
  • 49-60 months: 76%
  • Over 61 months: 70%

This correction aims at both second hand vehicles and new vehicles acquired, taking into account the number of months elapsed since the registration at the vehicle registration service.
 

Minimum amount

The benefit in kind shall never be less than a certain minimum amount:

2025: EUR 1,650

2024: EUR 1,600

2023: EUR 1,540

2022: EUR 1,400

2021: EUR 1,370

2020: EUR 1,360
 

Contact

If you have any questions about the calculation of CO2 emissions, you can always contact your usual BDO contact person or one of our Global Employer Services experts: