Article

01.03.2016

The tax regime for company cars explained

Since 2012, the benefit in kind for company cars has been calculated by applying a CO2 coefficient to the list value of the vehicle concerned.

How is the list value defined?

The list value is the actual list price of the new car including all optional extras when sold to a private individual plus the VAT actually paid. Any discounts, reductions or refunds that were obtained cannot be deducted from this amount when calculating the benefit obtained.

The CO2 coefficient

The value of the benefit in kind also depends on the CO2 emissions of the vehicle. The tax authorities apply a base percentage of 5.5% in this case. This percentage is applied to 6/7 of the list value.

The theoretical formula is then: 6/7 of the list value x 5.5%

Bonus/penalty

This was the theory in short. However, the government wishes to encourage the use of environmentally friendly cars. Accordingly, fuel-efficient vehicles benefit from a lower base percentage. The tax authorities use a so-called reference emission level for that purpose: 89 gram/kilometre for diesel cars, 107 gram/kilometre for petrol cars. Green cars with lower CO2 emissions are given a reduction of 0.1% on the basic rate for each gram less that they emit. The reverse also applies: cars with higher CO2 emissions are subject to a higher rate. Note: these changes to the base rate are limited. The reduction is limited to a minimum rate of 4%, and the increase is limited to a maximum rate of 18%.

  • In practice, the following formula applies to diesel cars:
    [list value x (5.5% + (0.1% x (CO2 - 89)))] x 6/7
  • For vehicles that run on petrol, LPG, and natural gas, the formula is:
    [list value x (5.5% + (0.1% x (CO2 - 107)))] x 6/7

The phased reduction eases the pain

A correction coefficient is applied to this list value depending on the age of the vehicle.

In the tax administration's first adjustment to the tax regime, it decided to take account of the vehicle's depreciation as it gets older. This was achieved with the introduction of a phased reduction of 6% per year from first registration.

Specifically, this means that the benefit in kind derived from the vehicle is taxed at:

  • 100% from 0 to 12 months
  • 94% from 13 to 24 months
  • 88% from 25 to 36 months
  • 82% from 37 to 48 months
  • 76% from 49 to 60 months
  • 70% from 61 months, where 70% is the minimum limit.

The value of the benefit in kind is added to the employee's taxable gross salary. If the employee pays a personal contribution for the private use of the car, this contribution is deducted from the value of the benefit in kind.

Benefits in kind and personal income tax

  • BMW 318d first registered in 2016 with a list value of €32,550 and CO2 emissions of 106 g. For 2016, the benefit in kind subject to taxation, calculated on the basis of the CO2 emissions and the list price, is €2,008.80 (32,550 x 6/7 x ((106-89) x 0.1) + 5.5%).
     
  • BMW X5 3.0d first registered in 2016 with a list value of €61,750 and CO2 emissions of 156 g. For 2016, the benefit in kind subject to taxation, calculated on the basis of the CO2 emissions and the list price, is €6,457.29 (61,750 x 6/7 x ((156-89) x 0.1) + 5.5%).

Tax deductibility of the vehicle for corporation tax

For the BMW 318d in the examples above, the non-deductible amount would increase by €341.50 (2,008.80 x 17%). This leads to an increase of €116.07 in corporation tax. For the BMW X5, the increase would be €1,097.74 (6,457.29 x 17%), which would lead to an increase of €373.12 in corporation tax.

And what about mileage expenses?

An employee who does not have a company car and who claims expenses from the employer for business travel in his or her own car does not have to include these expenses in their personal income tax return, on condition that the employer pays EUR 0.3412 per kilometre (for the period 01/07/2015 - 30/06/2016). If you pay higher mileage expenses, you must justify this to the tax authorities. Otherwise the surplus will be taxed as pay.

Benefits in kind and disallowed expenses

The tax on the company car is divided between the employees and the employers. If a company provides the benefit in kind, it must include 17% of the benefit in the disallowed expenses. The disallowed expenses therefore include: 17% x 6/7 x list price x CO2 percentage.

It's important to realise that the company must always pay tax on the benefits in kind. No deductions may be applied to the amount included in the disallowed expenses. Accordingly, this amount is always the minimum tax base.

This amount included in the disallowed expenses comes on top of the existing deduction restriction for car expenses. However, the value of the benefits in kind may still be deducted from the non-deductible car expenses.

Article

10.02.2021

What is the future for mobility post-coronavirus?

The health and economic crisis has affected all aspects of every sector. Among them, mobility, for both private individuals and for companies.

Mobility is evolving every day. And it has been driven further as a result of the coronavirus crisis. Many people have been locked down and working from home has been widespread in many parts of the world.

The coronavirus crisis has changed concerns about transport

We are no longer moving around in the same way. And concerns are no longer the same. According to a BCG Consulting report, social distancing and vehicle cleanliness are the most important aspects for 41% and 39% of respondents, respectively, when choosing a mode of transport. There is also pre- and post-Covid mobility, with respondents being more likely to choose walking, their own bicycle or scooter, or their car than before the crisis.

Sustainable and alternative mobility in the years to come

Mobility has not necessarily waited for the coronavirus crisis in order to evolve. And, according to the same report, the share of more environmentally-friendly vehicles will continue to increase. By 2035, more than 35% of new vehicles will be electric cars, becoming the predominant form of motorised transport worldwide. Autonomous cars will also become more common, with 10% of vehicles being level 4 vehicles (able to travel without a driver, for example), and 65% level 2 or higher.

Customised mobility for employees, right now

The future of mobility is also relevant now, especially for businesses and the self-employed. The need for alternative modes of transport does not only concern private individuals, but also employees. There is no longer a single mode of transport for all situations, but a range of means depending on the need at a given moment. Electric cars, hybrid vehicles, electric bicycles, a public transport season ticket, car sharing, leasing, etc. These modes can take different forms and be combined in a mobility card, for example. There are benefits for the employees and managers of a company but also for the company itself through cost reduction, optimisation and fleet management.

Want to know more about sustainable and alternative mobility for you and your employees?
Find out more about our tailor-made mobility solutions
Article

28.01.2021

The road to alternative mobility

Nowadays, responsible fleet management is built around sustainability. We're here to help you identify and realise your Corporate Social Responsibility ambitions.

Together we can cut your company's carbon footprint, improve employee mobility, and make sure these steps become a central pillar of your company's added value. In short, our aim is to have an alternative mobility policy.

Energy transition

We can help you make the switch to alternative mobility and new technologies to reduce your carbon footprint. Our SMaRT approach ensures your fleet has the best energy mix to match your strategy and driver profiles.

Alternative mobility needs new technologies to go hand in hand with new infrastructure. That's why we offer not only electric cars, but also the right charging solutions, too. As part of our integrated service provision we can determine how many charging points you need, install them, and manage how they are used both at the workplace and at the driver's home.

Soft mobility

Modern mobility management is about more than just cars or vans. You need a 360-degree approach. We'll work with you to determine your mobility strategy and needs. Greener cars are just one of the options available. We have a number of mobility management solutions (such as the Mobility Card) and alternative mobility solutions (such as bicycle leasing) to inspire your organisation to offer a more flexible range.

Focus on employees

When you put your employees at the heart of your organisation, you're in a better position to find skilled employees, satisfy them, and retain them. Go a step further than just an alternative mobility solution: focus on their safety and let them play an active role in achieving your sustainability goals. Trust us to improve their safety and integrate new technologies.

Operational leasing is offered by Arval Belgium SA/NV, with the intervention of BNP Paribas Fortis SA/NV – Montagne du Parc/Warandeberg 3, B-1000 Brussels, Brussels Register of Companies VAT BE0403.199.702.
Promotion only available from Thursday 21 January up to and including Wednesday 31 March 2021 and is only available to professional clients (self-employed, liberal professionals and SMEs) of BNP Paribas Fortis and Fintro.
The information provided here does not constitute an offer. An offer is made only after your file has been accepted and is always subject to Arval Belgium SA/NV's General Terms and Conditions.
Article

27.01.2021

Mobility, more than just four wheels

BNP Paribas Fortis offers complete mobility solutions. Sometimes a four-wheeled fleet is not enough for your mobility needs.

As a reliable partner, we can help you with every step – or pedal – of your mobility trajectory.

Mobility analysis and advice

Our mobility managers can work together with your relationship manager to develop a future-focused mobility strategy.

We start by listening to you: we want to understand your needs and concerns when it comes to mobility. This is our starting point for creating the best mobility solution for you and your company. We will build on this foundation with our expertise, while also taking Belgium's specific legal and fiscal ecosystem into account.

New mobility solutions

As well asfull-service leasing,we also offer our core product giving you access to our full mobility range, a wide range of basic services and added-value services such ascar parts,carpool management,bicycle leasingandmobility cards. All of our mobility services and their associated services such as parking, electric charging, fuel, tolls and car washing are within reach.

Managing your mobility budget

We'll help you and offer advice about implementing the federal mobility budget[VBK1] in your company. If that's too limited to meet your specific needs and aims, we can develop a personalised mobility budget solution to manage your mobility costs in line with the legal framework, just as we've done for a number of clients previously.

We've already implemented some tailored cost-neutral solutions, allowing our clients to combine lease cars with lease bicycles or other mobility solutions. This means the company can meet its goals while also making good on its promises and obligations.

Those ambitions might range from an ambitious CO2 agenda to a competitive offer to attract talent or a solution to solve your lack of car parking spaces.

Operational leasing is offered by Arval Belgium SA/NV, with the intervention of BNP Paribas Fortis SA/NV – Montagne du Parc/Warandeberg 3, B-1000 Brussels, Brussels Register of Companies VAT BE0403.199.702.
Promotion only available from Thursday 21 January up to and including Wednesday 31 March 2021 and is only available to professional clients (self-employed, liberal professionals and SMEs) of BNP Paribas Fortis and Fintro.
The information provided here does not constitute an offer. An offer is made only after your file has been accepted and is always subject to Arval Belgium SA/NV's General Terms and Conditions.
Article

27.01.2021

Choose hassle-free car sharing

Car sharing is a cost-efficient solution for your company, even while social distancing is in place. Our online booking system also ensures optimum occupancy.

It's easy to ensure hygiene, too, because your smartphone doubles up as a car key and there are guidelines in place for disinfecting the car after use. The driving administration for each user allows us to track who has driven the car if someone is infected or falls ill.

What is car sharing?

Car sharing adds a new dimension to the concept of carpooling. You can manage corporate car sharing using a smart online platform and an innovative app. There's no need to hand over keys, as users open, start and lock cars using the Car Sharing app. Car sharing is a great example of smart sharing and flexible, sustainable mobility. As the employer, you can make cars available and decide which employees can use them.

How does car sharing work?

Book online

Car sharing lets you book a car anywhere, any time. We've developed an intuitive online booking system and a free Car Sharing app for Android and iOS. It takes seconds to book a car, whether you're at the computer or on your smartphone.

You open, start and lock the car using the app. Picking up and dropping off keys is a thing of the past. No smartphone? no problem – we'll give you a chip card.

No more paperwork

The app also makes sure that all data is carefully recorded and kept. Mileage and fuel consumption are automatically recorded after each trip, while users can report any damage quickly and accurately using the app.

Need more information? Do not hesitate to discuss this with your relationship manager or contact us using this form.
Operational leasing is offered by Arval Belgium SA/NV, with the intervention of BNP Paribas Fortis SA/NV – Montagne du Parc/Warandeberg 3, B-1000 Brussels, Brussels Register of Companies VAT BE0403.199.702.
Promotion only available from Thursday 21 January up to and including Wednesday 31 March 2021 and is only available to professional clients (self-employed, liberal professionals and SMEs) of BNP Paribas Fortis and Fintro.
The information provided here does not constitute an offer. An offer is made only after your file has been accepted and is always subject to Arval Belgium SA/NV's General Terms and Conditions.

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