Private use of a company car

Dutch wage tax on the private use of a company car!

The tax and customs administration regards the gain obtained from the private use with a company car as the employee’s wages:
• a company car is made available to the employee
• the employee may also use the company car for private purposes
• the gain must be added to the employee’s wages.

The additional income for the private use of a car is a non-monetary component of the wages [benefit in kind]. All payroll taxes on the additional income are applicable.

There is no addition for private use if the employee limits its private use to a maximum of 500 kilometers per calendar year. [check the rules]

The tax base is the Dutch catalogue price of the car including VAT and the private motor vehicle and motorcycle tax [bpm]. The tax base is including accessories fitted ex works or fitted to the car by the dealer or importer before the date on which the car is assigned a registration number.

The addition tax percentage depends on factors including the car’s CO2 emissions. The categories and percentages change regularly. The maximum percentage [2015 level] is 25%.

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