Benefits in Kind – Company Cars – New Scale (as from 1 January 2004)
Context
As you know, the private use of a company car by an employee results in a taxable benefit for the individual.
As mentioned in our HRS headlines of 12 February 2004, the tax authorities have recently published a practice note fixing the total number of private kilometres that has to be taken into account to determine the benefit in kind. In summary, under this new practice note, the number of private kilometers can be fixed at 5.000 km where the distance from home to work is lower than 25 km and at 7.500 km where the distance is higher than 25 km.
The taxable benefit in kind is then computed by multiplying this number of kilometers by a coefficient, which represents the amount of benefit per kilometre. This coefficient depends on the fiscal horsepower of the vehicle.
News
The new coefficient to compute the taxable benefit in kind for income year 2004 has been published today in the Official Gazette (*). Please find below the new scale classified by fiscal horsepower (FHP) :
4 FHP : EUR 0,1554
5 FHP : EUR 0,1824
6 FHP : EUR 0,2016
7 FHP : EUR 0,2230
8 FHP : EUR 0,2433
9 FHP : EUR 0,2647
10 FHP : EUR 0,2928
11 FHP : EUR 0,3210
12 FHP : EUR 0,3401
13 FHP : EUR 0,3615
14 FHP : EUR 0,3750
15 FHP : EUR 0,3908
16 FHP : EUR 0,4021
17 FHP : EUR 0,4099
18 FHP : EUR 0,4201
19 FHP : EUR 0,4280
more than 19 FHP : EUR 0,4280
Posted: February 18th, 2004