addition
Addition per emission
The addition is a form of tax, because driving a company car is seen as extra income. This applies to both employees and entrepreneurs. This addition is generally calculated on the basis of the catalog value of the car. Based on the car or company car you drive, a percentage is determined that is then added to your taxable income or taxable profit.
What is addition and how does it work
Because the addition increases the income on which you have to pay tax, you have to pay more tax. It could also be that the addition puts you in a higher tax bracket. As a result, the net amount of the addition may even be slightly higher than what you first counted on. It is therefore wise not to just pick out a company car, but to compare the advantages and disadvantages. You can also look at options to keep that addition as low as possible.
Private/business addition
The Tax and Customs Administration uses a different method for calculating the addition for employees and entrepreneurs. For employees, the addition is added to the taxable income. The addition of entrepreneurs does not run via wage tax, but the addition is a correction to the profit. The net amount of the addition should be the same in both cases, provided the car is the same and the income is the same.
Calculate addition
The addition percentage depends on the CO2 emissions of the car. For cars with no emissions, the addition is 4% of the catalog value. For all other new cars, the addition is currently 22%. The government re-determines these percentages every year. The addition percentage is fixed for 5 years from the date of the first registration of the vehicle. In recent years, different percentages have been used, particularly for cars with reduced emissions. That is why you sometimes see offers of young used cars that the addition is 7, 14 or 15%.
Young timer scheme
For cars of 15 years and older, the addition is 35% regardless of the emissions. That percentage then does not apply to the catalog value, but to the current value of the car. Usually that is the price for which you purchase the car. Because the current value of a car of that age is significantly lower than the new price, this so-called youngtimer scheme is quite favorable in terms of addition. You will of course be driving an older car with a higher risk of high maintenance costs.
Addition percentages
Below is an overview of the addition percentages of recent years and for the coming years.
| Co2 emissions | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|---|---|---|
| No | 4% | 4% | 4% | 4% | 4%* | 4%* | 4%* | 4%* |
| 1-50g/km | 7% | 15% | 22% | 22% | 22% | 22% | 22% | 22% |
| 51-82g/km | 14% | 21% | 22% | 22% | 22% | 22% | 22% | 22% |
| 83-106g/km | 20% | 21% | 22% | 22% | 22% | 22% | 22% | 22% |
| 107+g/km | 25% | 25% | 22% | 22% | 22% | 22% | 22% | 22% |
| 15+ Years old** | 35% | 35% | 35% | 35% | 35% | 35% | 35% | 35% |
* The discount on addition for electric cars from 2019 is valid up to 50,000 euros, after which the addition is 22%.
** The addition percentage is calculated on the current value instead of the catalog value for cars aged 15 and older.
To get an indication of the addition, you first need to know the catalog value plus the additional cost of any options. You can use the addition percentage to calculate the amount that will be added to your taxable income. Then it is important to see in which tax bracket you fall so that you also know what tax percentage you have to calculate. If you know that percentage, you can calculate how much extra tax you have to pay for the company car.
Net addition amount
The catalog value times the addition percentage is the net amount that is added to your income. Then multiply this amount by the tax percentage and then divide the result by 12. If you have ended up in a higher tax rate due to the addition, part of the addition will still be included in the lower rate. The net addition may therefore be slightly lower.
Also pay attention to the surcharges and VAT correction!
Keep in mind that the increase in your taxable income also affects matters such as rent benefit, health care benefit, childcare benefit or child-related budget. You can check whether this is indeed the case by means of a test calculation on the website of the Tax and Customs Administration. There must also be a so-called VAT correction, if VAT has been deducted when purchasing the car and the car is used privately. VAT must be paid for the share that the car is used privately.