Calculate how much your company car will cost
One of the most eye-catching measures of the Di Rupo I-government is beyond doubt the new regime for company cars. A lot has already been written about it. Here we explain the new calculation formula, so you can calculate yourself how much your company car will cost.
Benefit in kind
When you have a company car as employee or as independent director, you receive a benefit in kind. You are presumed to receive a benefit due to the private use of the company car. This benefit in kind is taxed.
As from 1 January 2012 this benefit is calculated following a new formula.
Elements used in the calculation
The first important element in the calculation is the list price of the car. This means the list price VAT inclusive and all options, not taking any rebate into consideration.
Next to this, the CO2-emission is taken into consideration. The data on CO2-emissions is communicated by the DIV (Dienst Inschrijving Voertuigen). To calculate the CO2-emission, two elements are relevant: the reference emission and the CO2-base percentage. The reference emission is 115 g/km for petrol cars and 95 g/km for diesel cars and can be adapted annually. The base percentage amounts to 5,5%, but is increased with 0,1 per gram CO2 if your car has a higher emission than the reference emission. If your car emits less than the reference emission, the base percentage is decreased with 0,1% per gram.
Imagine a diesel car with an emission of 175 g/km. The reference emission for diesel cars is 95 g/km. The car emits 80 gram more CO2 than the reference. The base percentage of the car should consequently be increased: 0,1% x 80 = 8%. The total percentage to be taken into consideration amounts to 5,5% + 8% = 13,5%.
The percentage calculated accordingly can never be lower than 4% or higher than 18%.
This amount should then be multiplied by 6/7. The employer also contributes, since he should take 17% of the benefit in kind as non-allowed expenses. In other words, 1/7 of the benefit is taxed with the employer.
These elements lead to the following formula:
petrol cars: list price x (5,5% + (CO2-115) x 0,1%) x 6/7
diesel cars: list price x (5,5% + (CO2-95) x 0,1%) x 6/7
The amount calculated following this formula cannot be lower than 820€. Attention: this amount should be indexed. For income year 2012 this amounts to 1200€. This is the minimum amount on which you will be taxed in any case.
And how about social security?
On a company car a social security contribution is due. As from 1 January 2012 this contribution is calculated following a base formula. This base formula is then multiplied with an index factor (1,1641).
Petrol: (((CO2-emission x 9€) - 768)/12) x 1,1641)
Diesel: (((CO2-emission x 9€) - 600)/12) x 1,1641)
LPG: (((CO2-emission x 9€) - 900)/12) x 1,1641)
Electric: 20,83€ x 1,1641