One of the element to calculate the benefit in kind for company cars is the CO2-emission. The CO2-emission is calculated in function of the reference emission. A higher CO2-emission refers to a less clean car and a higher benefit in kind. The reference emission in laid down every year in a Royal Decree. Also for 2015 the reference emission somewhat decreases, and as a consequence the C02-percentage increases and the benefit in kind becomes more expensive.

The benefit in kind is calculated based on the following formula:

List price x CO2-percentage x 6/7 x age factor.

The CO2-base percentage of 5,5% is linked to the reference emission. The more polluting the vehicle compared with the reference emission, the percentage increases; the less polluting, the percentage decreases.

This reference emission is expressed in grams per kilometer and is annually determined by Royal Decree. By doing so the Government can take into account that cars are becoming more environmentally friendly, by decreasing the reference emission.

Per gram supplementary CO2-emission, the base percentage will increase with 0,1%.

So the lower the reference emission is determined, the higher the chance that your company car actually emits more: consequently the CO2-percentage in the formula will increase and your car will be more expensive.

As from 1 January 2015 the following reference emission applies:

for diesel cars: 91 gr/km (for 2014: 93 gr/km)

for petrol, LPG and natural gas: 110 gr/km (in 2014: 112gr/km).

We can best explain the impact on your car by means of an example.

A new car of 40.000€, petrol engine and an emission of 125 gr/km.

For **2014** the CO2-percentage is: 5,5% + 1,3% (because of 13 grams more emission than the reference emission of 112 gr/km) = 6,8%.

The benefit in kind will then be 40.000 x 6,8 x 6/7 x 100% = **2.331,43€.**

In **2015** the CO2-percentage is: 5,5% + 1,5% (because of 15 grams more emission than the reference emission for 2015 of 110 gr/km) = 7,0%.

The benefit in kind now amounts to 40.000 x 7,0% x 6/7 x 100% = **2.400,00€**.

If we do not take the age factor into consideration (so we reason again from a new car, same model, same emission) the car will cost you this year almost 70€ extra. So you will pay 3% more than last year. On average everyone driving a company car also for private purposes will pay 2,5% up to 5% more in 2015.

Since meanwhile the car is a year older, you can apply the age correction factor. This amounts to 6% per year. If we take this into consideration, the benefit in kind for **2015** amounts to 40.000 x 6,8% x 6/7 x 94 = **2.256,00€**.

If you already had the highest possible benefit in kind with your car (petrol car with an emission of more than 237 gr/km or diesel car with an emission of more than 218 gr/km), you will not pay more.

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