In January 2024, the CO2 reference emissions sparked significant media attention, with numerous reports stating that employees with company cars would face increased taxes this year.
The CO2 reference emissions are a factor used in calculating the benefit in kind of a company car. If the reference CO2 emissions decrease, the taxable benefit increases.
Until now, the determination of the reference-CO2emissions, used for calculating the taxable benefit, only took into account the NEDC values of cars. Due to the increase in fuel-efficient vehicles, this reference-CO2-emissions have been decreasing annually, resulting in an increase in the taxable benefit for fossil fuel cars.
Since 2021, however, newly registered fossil fuel cars only have WLTP values. Data from the DIV (Vehicle Registration Service) shows that the number of cars for which NEDC emissions can be determined has decreased to 39% since this year (including electric cars). Electric cars thus account for 44% in the calculation, while they represent only 17% of the total registrations.
To address this issue, the government has decided to modernize the determination of the CO2 reference emissions starting from the tax year 2024.
Moving forward, consideration will be given to all vehicles:
For cars with known NEDC emissions, the NEDC value will be considered;
For cars with known WLTP emissions but not NEDC emissions, the WLTP value will be considered;
For electric cars, a 0-emission will be considered.
This approach ensures a correct and representative calculation of the reference-CO2-emissions.
With these adjustments to the legislative framework, in 2024, we arrive at the following reference-CO2-emissions:
78 g/km instead of 51 g/km for vehicles with a petrol, LPG or natural gas engine;
65 g/km instead of 42 g/km for vehicles with a diesel engine.
The reference-CO2-emissions have evolved as follows over the past 5 years:
Calendar year | Petrol, LPG or natural gas engine | Diesel engine |
2024 | 78 g/km | 65 g/km |
2023 | 82 g/km | 67 g/km |
2022 | 91 g/km | 75 g/km |
2021 | 102 g/km | 84 g/km |
2020 | 111 g/km | 91 g/km |
EXAMPLES:
Below, I will provide a few examples of the annual difference this makes, without taking into account the vehicle's registration date.
Formula: list price x quotient date of first registration x period of use x CO2 percentage x 6/7
Example 1:
Peugeot 308 SW 1.5BHDi 130 EAT
List price: 27,024.79 €
CO2-emission: 129 g/km
Engine: Diesel
2023 | € 27 024,79 x 100% x 365/365 x (5,5% + (129 g/km – 67 g/km) x 0,1% x 6/7 |
Taxable amount on an annual basis: € 2710,20 | |
2024 (old) | € 27 024,79 x 100% x 366/366 x (5,5% + (129 g/km – 42 g/km) x0,1% x 6/7 |
Taxable amount on an annual basis: € 3289,30 | |
2024 (new) | € 27 024,79 x 100% x 366/366 x (5,5% + (129 g/km – 65 g/km) x0,1% x 6/7 |
Taxable amount on an annual basis: € 2756,53 |
Example 2:
Nissan Qashqai Tekna
List Price: € 41 155,88
CO2-emission: 145 g/km
Engine: Petrol
2023 | € 41 155,88 x 100% x 365/365 x (5,5% + (145 g/km – 82 g/km) x0,1% x 6/7 |
Taxable amount on an annual basis: € 4162,62 | |
2024 (old) | € 41 155,88 x 100% x 366/366 x (5,5% + (145 g/km – 51 g/km) x 0,1% x 6/7 |
Taxable amount on an annual basis: € 5256,19 | |
2024 (new) | € 41 155,88 x 100% x 366/366 x (5,5% + (145 g/km – 78 g/km) x 0,1% x 6/7 |
Taxable amount on an annual basis: € 4303,73 |
As illustrated above, compared to 2023, there is only a small increase in the taxable benefit visible. Without intervention by the government, the taxable benefit would have easily been 20% higher this year.
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