The Minister of Finance send in April to our Parliament the suggestion to accept only 100% emission less company cars as per January 1, 2027, or else.
Only 100% emission less company cars as per January 1, 2027
In order to meet the 2030 goal to reach the 55% emission reduction our Government agreed upon, an new measure has been introduced. Only 100% emission less company cars as per January 1, 2027 are accepted.
How to read this. If the company purchases a non-electric car after January 1, 2027, this punishment is in place. There is no difference in a second hand non-electric car with a release date before January 1, 2027. The pin point moment is the company making available a company car after January 1, 2027 that is non electric.
The company does not need to own the company car, a company car be leased, rented or via another means made available to the employee.
Non electric company cars already owned by the company prior to January 1, 2027 are no under this punishment.
Or else
The or else refers to the penalty if the entrepreneur does not comply. The penalty is that not only the employee gets a remuneration in kind for private use. The employer will get one as well, at the 52% tax rate. In no way or form this penalty can be allocated to the income of the concerning employee.
The method of collection is created in the payroll. Which implies the emission reduction of 55% only applies to BV type of companies, not to self-employed companies.
Young timer
The young timer arrangement might need to be adjusted as well. The Young timer arrangement is for cars exceeding the age of 15 years old. The percentage of remuneration in kind for these cars is 35%. 35% seems high, however older cars are not charged at the Dutch catalogue value, but at the day rate. Which could be significantly lower.
Hybrid company cars
Hybrid company cars are not emission less vehicles. Please keep that in mind.
Tax is exciting
We think tax is exciting. We think that emission reduction is important. However, if you take the full road of the building of the electric vehicle and the energy stations burning fossil fuel to provide for electricity does not make the electric vehicle emission free.
Those entrepreneurs who do want to contribute to emission reduction and have a practical company car, drive a hybrid car. Even though an effort is made by the entrepreneurs, it is being punished after January 1, 2027.
Adjusting the young timer arrangement to meet emission goals is a bit of a contradiction. Stretching the usage time of a car, is preventing that investment in that car becoming waste very soon.
Tax is exciting BV fully operates electric vehicles, despite we have the opinion these are not emission free.
