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  • Benefit in kind company car: CO2 emission reference for 2020

Benefit in kind company car: CO2 emission reference for 2020

11 December 2019

The CO2 emission reference applying in 2020 for the calculation of the benefit in kind of the private use of a company car by company directors and employees has been published in the Belgian Official Journal.

 

CO2 emission reference for 2019 and 2020

For the income year 2020 (assessment year 2021) the CO2 emission reference has been determined as follows:

  • Petrol, LPG, or natural gas cars: 111 g/km
  • Diesel cars: 91 g/km

For the income year 2019 (assessment year 2020) the CO2 emission reference has previously been determined at:

  • Petrol, LPG, or natural gas cars: 107 g/km
  • Diesel cars: 88 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%.

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 card need to be multiplied by 2,5.

A hybrid car is considered to be a 'false hybrid' when the battery capacity is less than 0,5 KWh per 100 kg car 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.

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 Aprl 2020.

The tax authorities will publish this information afterwards.


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:

2020: EUR 1,360

2019: EUR 1,340

2018: EUR 1,310

2017: EUR 1,260

 

Contact

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