Benefit in kind – Company cars – New scale (as from 1 January 2006)
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 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 2006 has been published in the Official Gazette n° 61 of 23 February 2006. Please find below the new scale classified by fiscal horsepower (FHP):
4 FHP : EUR 0,1617
5 FHP : EUR 0,1898
6 FHP : EUR 0,2097
7 FHP : EUR 0,2320
8 FHP : EUR 0,2531
9 FHP : EUR 0,2753
10 FHP : EUR 0,3046
11 FHP : EUR 0,3339
12 FHP : EUR 0,3539
13 FHP : EUR 0,3761
14 FHP : EUR 0,3902
15 FHP : EUR 0,4066
16 FHP : EUR 0,4183
17 FHP : EUR 0,4265
18 FHP : EUR 0,4370
19 FHP : EUR 0,4452
more than 19 FHP : EUR 0,4452
Posted: February 23rd, 2006