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    Company cars to be more heavily taxed as of January 1st

    ©Belga
    ©Belga

    From January 1st onwards, employees enjoying the use of a company car will have to pay an average of 2.5 to 3% more for the pleasure than in 2014 following the annual adjustment of the CO2 emissions standard used to calculate tax relief. From Thursday onwards, the CO2 emissions standard will drop for both petrol and diesel vehicles. This will increase the taxable benefit and ans a resulte of the increase in payroll tax on benefits-in-kind, employees’ net salary will go down.

    The lowering of the standard will not have an impact on environmentally-friendly cars (electric or hybrid) whose drivers will continue to only pay the minimum.

    Lars Andersen (Source: Belga)