Extra tax on petrol and diesel business lease cars for employees

What changes? 

Do you offer an employee a business lease car? And does your employee also use the car privately or to commute to work? From 1 January 2027, you will pay extra tax on business lease cars that are not completely emission-free. Such as petrol, diesel, or hybrid vehicles. 

The tax is:

• 12% of the car’s list price for cars up to 25 years old
• 12% of the market value for cars more than 25 years old 

You pay the tax via your payroll taxes and may not pass it on to your employee. 

The purpose of the tax is to encourage employers to offer only lease cars with zero emissions to their employees, such as electric cars. 

Transitional period 

A transitional period applies for petrol, diesel, or hybrid lease cars you offer employees before 1 January 2027. The extra tax will apply to these cars from 1 July 2030. 

For whom? 

• Entrepreneurs who offer their employees lease cars for private use. 

When? 

The change in law is expected to enter into effect on 1 January 2027.

Please note: The effective date of this measure is not yet final. Entry into force is subject to its passing through the Lower and Upper Houses (Tweede en Eerste Kamer) of parliament. After publication in the Staatsblad or Staatscourant (Government Gazette, in Dutch) the law can take effect.