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03Feb

Benefits in Kind – Company Cars – New Scale (as from 1 January 2005)

Context

As you know, the private use of a company car by an employee results in a taxable benefit for the individual.

As from income year 2004, a new practice note fixes the total number of private kilometres taken into account to determine the benefit in kind for the private use of a company car to 5.000 km or 7.500 km, depending on whether the distance between the home and the office is lower or higher than 25 km.

The taxable benefit in kind is then computed by multiplying this number of kilometres 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 for computing the taxable benefit in kind for income year 2005 has been published today in the Official Gazette. Please find below the new scale classified by fiscal horsepower (FHP):

4 FHP : EUR 0,1585
5 FHP : EUR 0,1861
6 FHP : EUR 0,2056
7 FHP : EUR 0,2274
8 FHP : EUR 0,2481
9 FHP : EUR 0,2699
10 FHP : EUR 0,2987
11 FHP : EUR 0,3274
12 FHP : EUR 0,3469
13 FHP : EUR 0,3687
14 FHP : EUR 0,3825
15 FHP : EUR 0,3986
16 FHP : EUR 0,4101
17 FHP : EUR 0,4181
18 FHP : EUR 0,4285
19 FHP : EUR 0,4365
more than 19 FHP : EUR 0,4365

(*) http://news.hrservices.be?lk200502031

Posted: February 3rd, 2005