On 12 December 2024, the new CO2-reference values for the calculation of the benefit in kind (for the private use) of company cars for calendar year 2025 were published in the Belgian Official Gazette.
As the Belgian vehicle fleet becomes greener (and thus less polluting) by the year, due to the accelerated electrification of many models and the introduction of dedicated advanced EV platforms, the greening of the company cars would inevitably cause a substantial increase of the taxable benefit in kind for the private use of a (non-electric) company car.
More specifically, the CO2 emission of the company car and the reference CO2-emission (which is different for diesel cars and for petrol, LPG or natural gas cars) determine the amount of the taxable benefit. As the Belgian car park becomes less pollutant due the rise of hybrid and full electric cars, the CO-2 reference also drops significantly by the year. Consequently, the lower the CO2-reference emission, the higher the taxable benefit in kind for (fossil powered) cars. Fortunately, the benefit in kind does not only increase. In order to determine the taxable benefit for the private use of company cars in the hands of employees and company directors, the age of the company car (taking into account the date of first registration of the vehicle) reduces the benefit in kind (cfr. application of the “age coefficient”), which to a certain extent counter balances the increase of the taxable benefit for fossil powered company cars.
As from 2024, the emissions of all cars are included (no matter how these are homologated). For cars where only the NEDC-emission is known, the NEDC-emission will be taken into account; for cars where the WLTP-emission is known but no NEDC-emission, the WLTP emission is taken into account and for electric cars, zero emissions are taken into account.
In practice these reference values for 2025 were highly anticipated (and even anxiously awaited). Contrary to the difficulties which unfolded during December 2023-January 2024, it was apparently no sweatbox exercise for 2025. Due to the increasing success of electric company cars – which have zero grams of emissions – the reference emissions decrease by about 9 percent.
The (maximum) reference CO2-emission values as of 1 January 2025 will be as follows:
The minimum benefit in kind for the private use of a company car in 2025 is not yet published but will be around EUR 1.650 (estimate for 2025, where this was EUR 1.600 in 2024).
3. Different formulas…
Please find below different formulas in order to calculate the benefit in kind for the private use of a company car:
Diesel:
Catalogue value x age coefficient of the vehicle x 6/7 x [5,5 + ((CO2 – 59) x 0,1)]%
Petrol, fake hybrids, LPG and CNG:
Catalogue value x age coefficient of the vehicle x 6/7x [5,5 + ((CO2-71) x 0,1)]%
Electric/hydrogen & “real” plug-in hybrids (diesel and petrol):
Catalogue value x age coefficient of the vehicle x 6/7 x 4%
Age coefficient since first registration:
| Age coefficient since first registration | ||
| From 0 to 12 months | coefficient of 1 | 100% |
| From 13 to 24 months | coefficient of 0.94 | 94% |
| From 25 to 36 months | coefficient of 0.88 | 88% |
| From 37 to 48 months | coefficient of 0.82 | 82% |
| From 49 to 60 months | coefficient of 0.76 | 76% |
| Over 60 months | coefficient of 0.70 | 70% |
Example:
For a diesel car with a catalogue value of EUR 40.000 – 115 g CO2 – first registration on 1 January 2023 (25 months in January 2025):
For income year 2024: Catalogue value (EUR 40.000) × [5.5 + ((115 – 65) × 0.1)] % × 6/7 × 0.94 = 3.384 EUR on a yearly basis or EUR 282 on a monthly basis.
For income year 2025: Catalogue value (EUR 40.000) × [5.5 + ((115 – 59) × 0.1)] % × 6/7 × 0.88 = EUR 3.349,03 on a yearly basis or EUR 279,09 on a monthly basis.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Nic Boydens
Partner
Philip Maertens
Partner
Further information on Vialto Partners can be found here: www.vialtopartners.com
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