Company car benefit in kind calculator

Calculator

Please have a look at the principles below before making any computations

Principles

When a company car is put at the disposal of an employee, the private use of this car will result in a taxable benefit for the individual. Private use includes all uses other than the pure business use, including use during weekends and holidays.
Please note that private use also includes commuting between home and the fixed place of work.

The benefit in kind is determined by Royal Decree on a lump sum basis. It equals the number of kilometres driven for private purposes multiplied by a coefficient, which represents the amount of benefit per kilometre. This coefficient depends on the fiscal horsepower of the vehicle.

As from 1 January 1993, an irrevocable presumption has been introduced that a minimum of 5.000 kilometres (including home-work commuting) per year has to be taken into account as private kilometres for the calculating of the fringe benefit.

As from 1 January 2004, a new circular fixes the private kilometres to 5.000 km or 7.500 km, depending on whether the distance between the home and the office (fixed place of business) is lower or higher than 25 km. More info.

A circular has now specifically stated that the place where the employee or company director was present during 40 days or more in the course of the.It is therefore possible that more than one place qualifies as a fixed place of business. More info.

If the employee pays a personal contribution (in any way, e.g. in cash, e.g. by paying the fuel etc…) for the company car, this amount is deducted from the benefit in kind.

Related documentation

The individual taxation in Belgium.