If you’re thinking of buying a company electric car, would it be a good idea to do so before the end of 2018?
Fully electric car
Only if you buy a car with zero CO₂ emissions will a reduced additional tax liability apply for income tax and payroll tax. Only a fully electric An electric car has zero CO₂ emissions. After all, a hybrid car has an internal combustion engine (petrol or diesel) as well as an electric motor, and therefore produces CO₂ emissions.
The basic additional tax rate for the private use of a company car is 22%. This imputed income is calculated on the basis of the car’s list price. For employees, the personal contribution towards the private use of the car may be deducted from the imputed income, but this never results in a negative imputed income.
For a fully electric car, there is a reduction of 18 points on the basic additional tax liability percentage, bringing the additional tax liability percentage to 4%.
Tesla tax
With effect from 1 January 2019, this additional tax liability applies only to the list price up to €50,000. For the portion of the list price above that amount, the unreduced basic additional tax liability percentage applies. This measure has also become known as the “Tesla tax“.
Suppose you buy a Tesla in 2019 with a list price of €80,000. In that case, you would add the following to your profits or salary: 4% of €50,000 = €2,000, plus 22% * €30,000 = €6,600. Total additional tax liability: €8,600. If you buy the same Tesla in 2018, you would add: 4% * €80,000 = €3,200.
The “Tesla tax” does not apply to fully electric vehicles powered by hydrogen.
It’s about the DET
The abbreviation DET stands for: Date of the vehicle’s first registration for use on public roads. This applies even if this first registration did not take place in the Netherlands.
The DET determines the additional tax liability rules that apply to the car. These rules then apply for the 60 months following the month in which the DET was recorded. If a fully electric car was first registered in December 2018, it will retain the reduction on the basic additional tax percentage of 18% until 31 December 2023 inclusive.
Environmental Investment Allowance
Most fully electric vehicles fall under an entry on the 2018 environmental list. Business owners can then claim the environmental investment allowance (MIA) for them (PLEASE NOTE: you must submit the investment on time to RFO sign up (for the MIA).
The positive list published by RVO sets out the vehicles to which the MIA definitely applies. Different types of car fall under different MIA codes. Please refer to the environmental list for the exact amount of the deduction and whether Vamil applies. It is not yet known whether these vehicles are also included on the 2019 environmental list.