• Benefit in kind company car: CO2 emission reference for 2018

Benefit in kind company car: CO2 emission reference for 2018

Peter Wuyts, Partner |

21 December 2017

The CO2 emission reference applying in 2018 for the calculation of the benefit in kind of the private use of a company car by company directors and employees has been published.

CO2 emission reference for 2018 and 2017

For the income year 2018 (assessment year 2019) the CO2 emission reference has been determined as follows:

  • Petrol, LPG, or natural gas cars: 105 g/km
  • Diesel cars: 86 g/km

 

For the income year 2017 (assessment year 2018) the CO

emission reference had already been determined at:

  • Petrol, LPG, or natural gas cars: 105 g/km
  • Diesel cars: 87 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.

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 initially 95 g/km for a diesel car and 115 g/km for a gasoline fueled car. 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.

 

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%.

For ‘fake hybrids’ (vehicles equipped with both a fuel engine and battery with a capacity of less than 0.6 KWh/100 Kg) purchased or leased from 1 January 2018, the calculation of the benefit in kind needs to be done, based on the CO2 emission reference of the equivalent car model with a diesel or petrol engine from 2020. If there is no equivalent model of the vehicle, the CO2 emission is to be multiplied by 2.5.

 


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:

  • 2018: € 1,310
  • 2017: € 1,280
  • 2016: € 1,260

 

Contact

Questions regarding this subject can be addressed to your regular BDO contact or to one of our Tax experts Employment Tax & Legal Services team: