January 15, 2021

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Company cars will be taxed more heavily next year

Company cars will be taxed more heavily next year

The taxable use of company cars will increase sharply in the next year. This is due to the annual adjustment of the standard emissions in the calculation formula, writes De Tijd on Wednesday.

Anyone who receives a company car from their employer or company and is also allowed to use it for private travel or to commute to and from work is taxed on this service. This service is charged at a flat rate.

An important part of this calculation is the CO2 coefficient, which refers to the difference between the emissions from the company car and the average emissions from newly registered cars. And that average has decreased significantly, resulting in a higher taxable benefit.

How much the taxable service increases depends on the CO2 emissions and the catalog value of the company car. “The driver pays up to 50 percent tax on the taxable service. If the taxable service increases by 300 euros per year, he pays around 150 euros per year or 12.5 euros per month more in taxes, ”says Veerle Michiels, mobility expert at HR service provider SD Worx, to De Tijd.