Benefit in kind for company cars reduces in 2019

The benefit in kind for company cars is based on a formula. An essential element for the formula is the CO2 emissions reference level. The higher the car scores above the reference level, the higher the benefit in kind. This reference level is laid down every year in a royal decree. The amounts for this year are favourable for the tax payer: the benefit in kind decreases.

Benefit in kind based on a formula

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

The CO2-percentage and the emission reference level

The base CO2-percentage of 5,5% is linked to a reference emission level. This reference emission level is expressed in gram per kilometre and is determined annually by royal decree:

In case a car is more polluting than the emission reference level, the base percentage increases with 0,1% per gram extra emission, up to a maximum of 18%.

In case a car is eco-friendlier, the base percentage decreases with 0,1% per gram less emission, to a minimum of 4%.

In case a car has an emission which equals the emission reference level, the base percentage of 5,5% applies.

The government annually adapts the emission reference level. By doing so, it can react to the fact that cars are becoming eco-friendler.

The emission reference level for 2019

For 2019, the emission reference level increases. Therefore, for the same car a lower base percentage will apply. Consequently, for the same car the benefit in kind will become cheaper.

The emission reference level for calendar year 2019 equals to:

For cars with a diesel engine: 88 g/km (instead of 86 for 2018).

For cars running on petrol, lpg or natural gas: 107 g/km (instead of 105 for 2018).

Overview of emission reference levels in the previous years

2012: 95 g/km (diesel) and 115 g/km (petrol)

2013: 95 g/km (diesel) and 116 g/km (petrol)

2014: 93 g/km (diesel) and 112 g/km (petrol)

2015: 91 g/km (diesel) and 110 g/km (petrol)

2016: 89 g/km (diesel) and 107 g/km (petrol)

2017: 87 g/km (diesel) and 105 g/km (petrol)

2018: 86 g/km (diesel) and 105 g/km (petrol)

Minimum 1.310 euro

The benefit in kind will amount to, irrespective the emission, a minimum of 1.310 euro.