Addition for private use of company car and work-related expenses scheme

Addition for private use of company car

Employees who have the use (including for private purposes) of a company car pay car tax by having an addition made to their salary in the amount of a particular percentage of the car’s list price inclusive of value-added tax. The percentage depends on the vehicle’s CO₂ emission performance. The date of the vehicle’s initial registration serves as the reference date where the car tax band is concerned.

It has been decided in contrast to 2016, when a variety of percentages still applied, with effect from 2017 to reserve the reduced car tax rate of 4% for newly registered company cars with zero CO₂ emission. A 60-month maximum term will apply to the percentages and emission limits (i.e. a change in either or both will not cause the same car to come under different regimes from one year to the next). The rate of 22% will not apply to cars which prior to 2017 came under the 25% car tax regime.

Further information concerning the changes to the car tax system for the period from 2017 to 2020 is available on the Tax and Customs Administration’s web site (dutch page).

Work-related expenses scheme

The free margin for tax-exempt allowances and disbursements to employees has remained unchanged, at 1.2% of the wage bill for tax purposes. The standard amount for a meal in the company cafeteria has been fixed at € 3.30 and that for accommodation and boarding, at € 5.50 daily.

Dutch version: Bijtelling privégebruik auto en werkkostenregeling