Addition
Additional charge per emission
The additional tax 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 based on the list value of the car. Based on the car or company vehicle 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 additional tax puts you in a higher tax bracket. As a result, the net amount of the additional tax may even be slightly higher than you had initially anticipated. It is therefore wise not to just choose a company car, but to carefully compare its advantages and disadvantages. You can also look at options to keep the additional tax as low as possible.
Private/business addition
The Tax Authorities use a different method to calculate the additional tax for employees and entrepreneurs. For employees, the addition is added to the taxable income. The additional tax for entrepreneurs does not go through payroll tax, but is a correction to the profit. The net amount of the additional tax should be the same in both cases, provided it concerns the same car and the same high income.
Calculate additional tax
The additional tax percentage depends on the CO2 emissions of the car. For cars with no emissions, the additional tax is 4% of the list value. The additional tax on all other new cars is currently 22%. The government re-establishes these percentages every year. The addition percentage is fixed for 5 years from the date of the vehicle's first registration. Different percentages have been used in recent years, especially for cars with reduced emissions. That is why you sometimes see offers for young used cars stating that the additional tax is 7, 14 or 15%.
Youngtimer scheme
For cars 15 years and older, the additional tax is 35%, regardless of emissions. That percentage does not apply to the catalog value but to the current value of the car. This is usually 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 additional tax. Of course, you drive an older car with a greater chance 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%* |
| 1-50 g/km | 7% | 15% | 22% | 22% | 22% | 22% | 22% | 22% |
| 51-82 g/km | 14% | 21% | 22% | 22% | 22% | 22% | 22% | 22% |
| 83-106 g/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 additional tax for electric cars from 2019 is valid up to 50,000 euros, after which the additional tax is 22%.
** The additional tax percentage is calculated on the current value instead of the list value for cars aged 15 years and older.
To get an indication of the additional tax, you first need to know the list value plus the additional cost of any options. Based on the addition percentage, you can calculate what amount will be added to your taxable income. Then it is important to see which tax bracket you fall into so that you know what tax percentage you should calculate with. If you know that percentage, you can calculate how much extra tax you have to pay for the company car.
Net amount of addition
The list 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 the addition has placed you in a higher tax rate, part of the addition will still fall into the lower rate. The net addition may therefore be slightly lower.
Also pay attention to the surcharges and VAT correction!
Please note that the increase in your taxable income also affects matters such as rent allowance, healthcare allowance, childcare allowance or child-related budget. You can check whether this is indeed the case by means of a test calculation on the Tax Authorities' website. If VAT was settled on the purchase of the car and the car is used privately, there must also be a so-called VAT correction. VAT must be paid for the proportion of private use of the car.