State Secretary for Finance Wiebes introduced the Bill Car Maintenance Act II submitted to the House of Representatives. In addition to adjustments to the motor vehicle tax (mrb) and the tax on passenger cars and motorbikes (bpm), this bill formalises the adjustments to the addition for private use of cars. The intended effective date of the measures is 1 January 2017.
Private use of car
An employee's private use of the passenger car or van provided to him or her by his or her employer results in an addition to wages, on which wage and income tax is due (a director-major shareholder is an employee).
The private use by an entrepreneur of a passenger car or van belonging to his or her business assets leads to an addition to the profit from business.
The general addition rate is: 25. This will be reduced to 22%. A car is new if it is registered in the Netherlands after 31 December 2016.
The environment-related discounts will expire. Cars still subject to an additional taxable benefit of 7%, 14% or 20% up to and including 2016 will go (in stages) to an additional taxable benefit of 22% from 2017.
Only for the private use car of so-called zero-emission cars an even lower additional tax rate of only 4%. But this addition applies over a list value of up to €50,000 (above which 22% must be added). This concerns fully electrically powered cars (with or without hydrogen).
Transitional law
There are no real surprises in the bill as it contains the measures, which the State Secretary already described in his Autobrief II sent to the House on 19 June 2015. The only real news is in the transitional law. Namely, its duration will be shortened. Currently, in the 60 months following the month in which the registration number was issued, the addition percentage for private car use of the moment the registration number was issued applies. Subsequently, the addition percentage applicable after the end of this period is applied for a successive period of 60 months.
From 1 January 2017, the addition rate will still be guaranteed for the first 60 months following the month in which the car registration was issued. But after this 60-month period expires, the addition rate will be adjusted annually according to the regulations in force at that time.
This applies to all cars except:
- diesel cars registered before 1 July 2012 with CO2 emissions not exceeding 95 g/km;
- Other cars with CO2 emissions not exceeding 110 g/km.
For these cars, the existing transitional law will be respected until 31 December 2018.
If private use of car is currently being added at 25%, this will remain the case. The transitional law described above applies only in respect of cars for which a lower addition rate was applied in the past.