Benefit in kind – Company cars – New scale (as from 1 January 2008)
Context
As you know, the private use of a company car by an employee results in a taxable benefit for the individual.
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 fixed place of business is lower or higher than 25 km, as described in our headline of 17 January (*).
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 coefficients for computing the taxable benefit in kind for income year 2008 have been published today in the Official Gazette(*). Please find below the new scale classified by fiscal horsepower (FHP):
4 FHP: 0,1682
5 FHP: 0,1975
6 FHP: 0,2182
7 FHP: 0,2414
8 FHP: 0,2633
9 FHP: 0,2865
10 FHP: 0,3169
11 FHP: 0,3474
12 FHP: 0,3681
13 FHP: 0,3913
14 FHP: 0,4059
15 FHP: 0,4230
16 FHP: 0,4352
17 FHP: 0,4437
18 FHP: 0,4547
19 FHP: 0,4632
more than 19 FHP:0,4632
(*) http://news.hrservices.be?200801171452
(**) http://news.hrservices.be?lk200802141
Posted: February 14th, 2008