Posted on June 29, 2015 at 9:00 PM
Since The beginning of 2012, the calculation of the benefit in kind for the private use of a company car has completely changed. The previous calculation which was based on the distance between the private address and the company address is no longer used. Starting from 01/01/2012 the calculation of the benefit in kind uses the “catalog value” and the CO2 emissions of the car. Because there were many vague points and questions about this “catalog value” the tax administration published a FAQ on their website. This list has been adjusted a second time on the 1st October 2012 with several clarifications on outstanding questions.
Promotional price reductions / Option packages
The biggest change in the new list is that a number of promotions can be taken into account of the calculation. Until now, the “catalog value” was the price including VAT and excluding discounts and rebates. This new directive explains that the “catalog value” can be decreased with (temporary) promotions if these (temporary) promotions are listed and mentioned in the price list of the manufacturer / importer and are also available for private persons. These (temporary) promotional reductions / packages can be an option pack which gives you a reduction on a group of options which is cheaper than the individual options. You’ll need to verify whether these packs are also available for the private market. When these packs are only available for the professional market, then the value of each option has to be taken into account (without reduction) for calculation the benefit in kind.
Buying a second hand car
Finally there is a big clarification regarding the calculation for second hand cars. When calculation the benefit in kind for a second hand car, you’ll have to take the actual paid VAT in to account of the calculation. So when you would buy a second hand car from a private person which is without VAT, there won’t be VAT in the calculation of the benefit in kind.
Car bought abroad
When buying a car outside of Belgium, the calculation will be based on the value of this car in Belgium and not on the actual invoice of this car. So you’ll need to verify the price of this car with the same options in Belgium and use this value for the calculation. When this car is not sold on the Belgian market, there won’t be a Belgian price list for that vehicle. In this case you can use the foreign price for the calculation of the benefit in kind.
The tax administration also clarified that in addition to the benefit in kind of the company car there is no separate benefit in kind for the personal use of the fuel card. The benefit in kind of the company car includes all benefits which are linked to the car.
Own contribution of extra miles
When the private use is limited to a maximum mileage per year and the employee must pay a personal contribution for each mile beyond this limit, you’ll still need to apply the new calculation of the benefit in kind. This because the company car is still available for personal use (home-work trips and / or actual private trips). This personal contribution can only reduce the benefit in kind. For example: when an employee pays 0,10 EUR for each mile above the maximum mileage / year, this contribution can reduce the benefit in kind. When the contribution is higher than the benefit in kind, it can be reduced to zero.
The tax administration can make your calculation Since the end of 2012, the tax administration has access to several databases and they can help you with the calculation of your benefit in kind for the company car. This calculation is based on the information that you can provide them using this form. They will send you the result of the calculation by mail.