Business Driving & Tax
Addition to taxable income (bijtelling) for electric cars: how does it work?
Updated
Electric driving is encouraged by the government with favourable tax conditions. As a business driver, you often benefit from a reduced addition to taxable income (bijtelling) percentage compared to a petrol car. In this article, you will learn which rules apply to the addition to taxable income for a fully electric car.
How does addition to taxable income (bijtelling) work with electric driving?
As soon as you use a company car for private purposes and exceed the limit of 500 kilometres per year, the Dutch Tax Authorities (Belastingdienst) add an amount to your income. For an electric car, a lower addition to taxable income percentage applies to a portion of the list price. The regular rate applies to the amount above this established cap.
Fixing the addition to taxable income percentage
The addition to taxable income percentage is fixed for a specific period from the vehicle's first registration. View the range of new electric cars to see which models are currently available for your company. This helps you maintain an overview of monthly costs.
- Favourable tax incentives for sustainable driving
- Fixed percentage for several years
- Lower energy costs per kilometre
Prevent private use with mileage logging
Do you want to avoid paying any addition to taxable income for your electric lease car? Then you must be able to prove that you drive no more than 500 kilometres privately per year. This is done through accurate and conclusive mileage logging. Always check the current rules of the Dutch Tax Authorities (Belastingdienst) for the exact threshold amounts and rates.
What role does the list price play in addition to taxable income?
It is crucial to realise that the addition to taxable income is not calculated on the vehicle's actual fiscal value at a given moment, but on its fixed list price. This means that the amount of the addition to taxable income for an electric car generally remains constant during the period of private use, provided the addition to taxable income percentage does not change. For a more expensive electric car, the addition to taxable income, at the same percentage, will therefore be higher than for a more affordable model, which affects the net monthly costs.
What happens when leasing a second electric car?
However, if both vehicles are used alternately for private purposes, they can both fall under the addition to taxable income scheme, although this is less common in practice. In such cases, it is essential to maintain very accurate mileage logging for both vehicles. The Dutch Tax Authorities (Belastingdienst) carefully check for abuse of the scheme. Seeking advice from a tax specialist can then be of great value to ensure that tax obligations are met correctly and unnecessary additional assessments are avoided.
Frequently asked questions
Does the low addition to taxable income rate apply to the entire purchase value?
No, the reduced rate applies up to a maximum list price (the so-called cap). Above that value, the standard addition to taxable income percentage applies.
How long does the addition to taxable income percentage remain valid?
The addition to taxable income percentage applicable at the time of first registration typically remains valid for 60 months for that specific car.