Dutch Tax Tips: Using a company car19 November 2013, by Nico Koppel
If you drive a company car paid for by your employer, it is considered taxable wages in kind in the Netherlands. The amount added to your salary that comprises this "wage" benefit depends on the car’s CO2 emissions.
The amounts for 2014 are as follows:
› 25 per cent added for CO2 emissions higher than 111 grams/km for a diesel vehicle, and 117 grams/km for other vehicles.
› 20 per cent added for CO2 emissions from 85 to 111 grams/km for diesel vehicles, and from 88 to 117 grams/km for other vehicles.
› 14 per cent added for CO2 emissions from 51 to 85 grams/km for diesel vehicles, and 51 to 88 grams/km for other vehicles.
Electric & Plug-in hybrid vehicles
The 2014 and 2015 addition for new vehicles with CO2 emissions lower than 50 grams/km is 7 per cent. For fully electrical vehicles the addition is 4 per cent. These new percentages apply to cars that are registered in 2014.
If the car was registered in 2013 or earlier, there is no addition for vehicles with CO2 emissions less than 50 grams/km.
All cars in the Netherlands, including company cars, are subject to vehicle tax. Here are a few important points to note:
› Zero rate
There is no additional rate for cars with CO2 emissions less than 50 grams/km in 2014.
› Foreign plates
Vehicle tax laws are being tightened in order to prevent tax avoidance by residents in the Netherlands who drive a vehicle with foreign plates and do not declare their Dutch vehicle tax.
The driver’s place of residence is crucial in this regard. A person is considered a resident of the Netherlands if they are registered or are required to register with the municipal personal records database.
Photo by Flickr user AndYaDontStop
For businesses, their base of operations as listed in the trade register determines if Dutch tax is liable on the vehicle.
Diesel vehicles with CO2 emissions less than 86 grams/km and other vehicles with emissions less than 89 grams/km are exempt from vehicle tax in 2014.