If you use a company car, you will be subject to an additional taxable benefit if you drive the car more than 500 kilometres privately on an annual basis. The lower the CO2 emissions, the lower the addition rate. The popular additional taxable benefit categories of 4%, 7%, 14% and 20% will continue to exist in 2015. However, it was recently announced that these additional tax rates will be partially revamped in 2016. Major car tax reforms can only be expected from 2017 onwards.
Tightening car taxes by 2016
There were already rumours, but it is now clear that car taxes in their current form have had their day. Around summer 2015, the cabinet will come up with proposals on the fiscal future of cars. It is possible that the additional taxable benefit system for company cars will then also be overhauled. It is not that far off yet. In fact, any proposals cannot take effect until 1 January 2017 at the earliest. The year 2016 is considered an intermediate year. To give the car industry sufficient preparation time, the changes to the 2016 addition rates have already been announced. However, these changes still need to be accepted by the Lower and Upper Houses of Parliament.
2016 addition categories
In 2016, the 7% addition category will disappear. This category now applies to cars with CO2 emissions between 1 and 50 g/km. The following changes will take place in the other addition categories:
- 4% addition: all-electric cars (zero emission cars),
- 15% addition: cars with CO2 emissions between 1- 50 g/km,
- 21% addition: cars with CO2 emissions between 51-106 g/km,
- 25% addition: cars with CO2 emissions over 106 g/km.
Note! While the addition rates will be increased in 2016, this is less drastic than what State Secretary of Finance Wiebes initially proposed. After fierce criticism, he adjusted his plans. The above addition categories are the result.
The percentage on purchase or lease will remain valid for a maximum period of 60 months. Lease contracts entered into before 1 January 2016 will remain under the current addition regime.
Half rate in motor vehicle tax
A change is also imminent in motor vehicle tax. For the interim year 2016, electric cars (zero-emission cars: CO2 emissions of 0 g/km) will enjoy a whole and semi-electric cars (CO2 emissions not exceeding 50 g/km) a half exemption in motor vehicle tax.
BPM
Finally, in BPM (tax on passenger cars and motorbikes), the three highest tranches (106-155 g/km; 156-174 g/km and over 174 g/km) will be increased.