The rules governing company cars have changed significantly with effect from 1 January 2017. As a result, not much will change in 2018.
Taxable income %
The standard additional tax liability remains 22%. For fully electric cars (zero CO₂ emissions), you receive a discount of 18%, which reduces the additional tax liability 4% amounts to. All discounts for hybrid cars have been withdrawn.
For cars first registered before 1 January 2017, the standard additional tax liability is 25%. The reductions to this percentage (resulting in an additional tax liability of 14% or 20%) apply for 60 months following the month of the car’s Date of First Registration (DET). After that, the reductions applicable at that time will apply. As a result, the additional tax liability 25% (NOT 22%).
The Association for Business Drivers (VZR) has asked the tax court whether this constitutes unlawful discrimination. The District Court of The Hague ruled against the VZR, but an appeal has been lodged directly with the Court of Cassation. To safeguard your rights, you can lodge an objection against the tax you pay on your car benefit. See our article on this subject.
Electric car
If you are considering buying a fully electric car, it is best to do so before 1 January 2019. For electric cars registered after 2018, the additional tax liability of 4% applies only to the first €50,000 of the list price. For the part of the list price above €50,000, you will then have to add 22% to your tax liability.
The discount for electric cars will be reviewed in February 2018. A decision may then be taken to adjust the percentages.
MRB and BPM
In 2018, electric cars are subject to a zero rate under the motor vehicle tax (MRB). For a plug-in hybrid car, you pay half the MRB rate.
A number of changes will come into effect in 2018 regarding the BPM payable when purchasing a new car. A different method will be used to measure CO₂ emissions. The BPM rates will be reduced. For car buyers, however, it is the final price of the vehicle that matters most, rather than how that price is calculated.