Benefits in Kind – Company Cars – New Scale (as from 1 January 2003)
Context
As you know, the private use of a company car by an employee results in a taxable benefit for the individual. Private use includes all use other than pure business use, including use during weekends and holidays. Please note that private use also includes commuting between home and the fixed place of work.
The taxable benefit in kind is determined by Royal Decree on a lump sum basis. It equals the number of kilometres driven for private purposes (with an absolute minimum of 5.000 km per year) multiplied by a coefficient, which represents the amount of benefit per kilometre. This coefficient depends on the fiscal horsepower of the vehicle.
News
The new scale to compute the taxable benefit in kind for the income year 2003 has been published today in the Official Gazette(*). Please find below the new scale classified by fiscal horsepower (FHP) :
4 FHP : EUR 0,1524
5 FHP : EUR 0,1789
6 FHP : EUR 0,1976
7 FHP : EUR 0,2186
8 FHP : EUR 0,2385
9 FHP : EUR 0,2595
10 FHP : EUR 0,2871
11 FHP : EUR 0,3147
12 FHP : EUR 0,3334
13 FHP : EUR 0,3544
14 FHP : EUR 0,3677
15 FHP : EUR 0,3831
16 FHP : EUR 0,3942
17 FHP : EUR 0,4019
18 FHP : EUR 0,4118
19 FHP : EUR 0,4196
more than 19 FHP : EUR 0,4196
Posted: March 6th, 2003