Extra tax on petrol and diesel business cars for employees

What changes? 

Do you offer an employee a business car? For example a lease car or a car from you own fleet? 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 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 (pseudeo final levy). You may not pass this tax on to your employee. 

The purpose of the tax is to encourage employers to offer only zero-emission business cars to their employees, such as electric cars. 

Transitional period 

A transitional period applies for petrol, diesel, or hybrid 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 or business cars from their own fleet that these employees also use privately or or for their commute. 

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.