If you drive a company car privately as well, your employer must add an amount to your wage. This is because you benefit from the private use. The amount is the so-called addition. The height of the addition depends on the catalogue price and the CO2 emissions of the car you drive. Your employer calculates wage tax/national insurance contributions on this addition. This means your net wage is reduced, unless you can demonstrate that you have not driven more than 500 kilometres privately per year.
From 2017, there are 2 addition rates: 4% and 22%.
The addition depends on the CO2 emissions of the car. The emission limits are re-determined every year. From 2017, only cars without any CO2 emissions fall under the 4% rate.
The below table applies to cars with a first registration date of 2017 or later.
| CO2 emissions in grams per kilometre | Addition percentage | ||
|---|---|---|---|
| 0 (full electric) | 4% | ||
| more than 0 | 22% |
In 2017, the normal percentage has been dropped from 25 to 22.
Was your car first registered before 2017, and did the 25% addition rate apply to that car? Then the 25% addition rate will continue to apply. Did the car fall under a low addition percentage in the past? And does the high addition apply as of 2017 due to the expiry of the 60-month period?
Then, too, the percentage will be 25 rather than 22.
In 2019, the percentages are the same as in 2017 and 2018 with the difference that a tax cap is set. This means that the low addition percentage applies up to the list price of € 50,000. If the list price is higher than € 50,000, 22% applies to the amount above that.
| CO2 emissions in grams per kilometre | Addition percentage | ||
|---|---|---|---|
| 0 (full electric) | 4% (basis up to € 50,000 | ||
| 0 (full electric) | 22% (for part of basis above € 50,000 | ||
| more than 0 | 22% |
In 2020, only certain cars without CO2 emissions will be coevered by the 8% rate. The reduced percentage of 8% applies to hydrogen-powered cars. For zero-emission cars that do not run on hydrogen, the 8% addition only applies up to a catalog value of € 45,000.
Tha table below applies to cars with a date of first admission in 2020.
| CO2 emissions in grams per kilometre | Addition percentage | ||
|---|---|---|---|
| 0 (full electric) | 8% (basis up to € 45,000 | ||
| 0 (full electric) | 22% (for part of basis above € 45,000 | ||
| more than 0 | 22% |
In 2021, only certain cars without CO2 emissions will be fully covered by the 12% rate. The reduced percentage of 12% applies to hydrogen-powered cars and to cars that are fully powered by integrated solar cells. The solar cells must have a capacity of at least 1 kilowatt peak and the battery must not contain lead.
For other zero-emission cars, the 12% addition only applies up to a catalog value of € 40,000. For the part above that, the addition of 22% applies.
| CO2 emissions in grams per kilometre | Addition percentage | ||
|---|---|---|---|
| 0 (full electric) | 12% (basis up to € 40,000 | ||
| 0 (full electric) | 22% (for part of basis above € 40,000 | ||
| more than 0 | 22% |
From 2022, the addition percentages for fully electric cars will continu to increase every year, until by 2026 all cars have the same percentage. From 2022 to 2024 this is 16%, in 2025 17% and from 2026 22%. In addition, these cars have a full exemption from roadtax and bpm. The addition cap for 2022 is € 35,000 and from 2023 to 2025 is that € 30,000. From 2026, there is no longer an addition cap.
Personal contribution for private use
Did you and your employer agree to a personal contribution for the private use? Then this contribution is deducted from the addition. You then only pay tax based on this reduced addition.
No addition with little private use
Do you drive less than 500 kilometres privately per calendar year? And can you demonstrate this? Then your employer does not need to add anything to your wage. You can request a form for this from the Tax Authority, by downloading it via the Belastingdienst website or calling the Belastingtelefoon.
No addition for delivery van for business use
Do you have a delivery van from your employer? And do you only use it for work and not privately? Then you can submit a statement for this. Your employer then does not have to add addition to your wage. You can also request the form via the Belastingtelefoon.
Passing on changes to the Tax Authority
Is your situation going to change? Communicate this to the Tax Authority as soon as possible. For instance: you have a 'statement of no private use of company car'. But now you are going to drive your company car privately for more than 500 kilometres per year. You then indicate this to the Tax Authority as well as your employer.
Note!
All kilometres you do not drive for work are private kilometres. All commuting kilometres are business kilometres.
