Business Driving & Tax
Addition to Taxable Income (Bijtelling) for a Company Car
Updated
If you use a company car for private purposes, a percentage of the car's list price is added to your income. This is known as addition to taxable income (bijtelling).
How is it calculated?
The addition to taxable income (bijtelling) percentage depends on the year of first registration and the type of car. The current percentages are published annually by the Dutch Tax and Customs Administration (Belastingdienst).
After 60 months
The percentage is generally valid for 60 months from the first registration date. After this period, it is re-determined according to the rules then in force.
When does addition to taxable income (bijtelling) not apply?
While addition to taxable income (bijtelling) is a standard component of using a company car, there are specific situations where it does not apply. The most significant exception is when you drive no more than 500 kilometres privately per year with the company car. This limit must be strictly adhered to and is only applicable if the car is demonstrably used exclusively for business purposes, with the exception of minimal private use. It is crucial to accurately record this.
To demonstrate that the 500-kilometre limit is not exceeded, a meticulous journey log must be maintained. This can be done manually, with an app, or via an automated system. Without proper administration, the Dutch Tax and Customs Administration will assume the car is also used for private purposes, and the addition to taxable income will still apply. Additionally, there may be exceptions for certain commercial vehicles that, by their nature and design, are exclusively suitable for business use.
What changes for a (second-hand) electric car?
The rules for addition to taxable income (bijtelling) for electric cars differ from those for cars with an internal combustion engine, aiming to stimulate the transition to sustainable transport. Electric cars benefit from a reduced addition to taxable income percentage, which can vary annually and applies up to a certain list price. For the part of the list price exceeding this threshold, the standard addition to taxable income percentage applies.
When acquiring a second-hand electric company car, the addition to taxable income percentage that was valid at the car's first registration date is leading. This percentage remains valid for 60 months from the first day of the month following that initial registration. After this 60-month period, the car falls under the regular addition to taxable income rules applicable to all cars at that time, regardless of whether it is electric or not.
- Reduced addition to taxable income percentage for electric cars.
- Applies up to a certain list price; above this, the regular rate applies.
- For second-hand: percentage valid for 60 months from first registration.
- After 60 months: regular addition to taxable income rules apply.
Frequently asked questions
Where can I find the current percentages?
On the website of the Dutch Tax and Customs Administration (Belastingdienst).