Extra tax on petrol and diesel company cars for employees
This change in law is going ahead: start preparing now
This act has been officially passed. You can start preparing your business.
For whom?
- Entrepreneurs who offer their employees lease cars or cars from their own fleet that these employees also use privately or for their commute.
What changes?
Do you offer an employee a company car? For example a lease car or a car from your own fleet? And does your employee also use the car privately or to commute to work? If so, from 1 January 2027, you will pay extra tax on company cars that are not completely emission-free. Such as petrol, diesel, or hybrid vehicles.
The 500-kilometre limit per year on private use does not apply to this additional tax. Commuting counts as private use for this purpose.
The tax per year 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 (pseudo 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 company 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 January 2031. Previously this was from 17 September 2030.
When?
The change will enter into effect on 1 January 2027.