As mentioned in our HRS Headline of 23 November 2004 (*), the draft bill of the so-called Program Law includes among other changes a new social security treatment for company cars.

Context

The 33% employer’s social security contribution (so-called solidarity contribution) will be replaced as from 2005 by a new solidarity contribution due by the employer and based on the CO2 emissions of the company car, irrespective of the number of driven private kilometres, of the fiscal horsepower or of the employee’s payment, if any, for the use of the car.

News

The Government has introduced an amendment to its bill of law, changing the way the CO2 contribution has to be computed. The solidarity contribution will be computed as follows:

CO2 emission of the car (g/km) x EUR 9 – applicable lump-sum reduction

The reduction depends on the type of fuel used: EUR 600 for diesel, EUR 768 for gasoline and EUR 990 for LPG.

E.g. for a diesel car emitting 153 g CO2/km, the yearly contribution will amount to
(9×153) – 600 = EUR 777.

This yearly solidarity contribution may not be lower than EUR 250 (also for electric cars).

It should be stressed that the above is part of the draft bill of the Program Law and may still be subject to other amendments before being finally passed by the Chamber of Belgian Representatives.

The draft bill of the Program Law is available on the Chamber’s web site:
FR: http://news.hrservices.be?lk200411221
NL: http://news.hrservices.be?lk200411222

An official web site is available with precise CO2 emissions of cars:
FR: http://www.health.fgov.be/pls/portal/co2_fr7
NL: http://www.health.fgov.be/pls/portal/co2_nl7

(*) http://news.hrservices.be?200411231924