If your employee uses his own car for corporate travel, you may reimburse the associated costs. You may reimburse the costs up to an amount of USD 0.20 per kilometre without being subject to taxes. Please note! Commuting kilometres are not corporate travel and can never be reimbursed without being subject to taxes. Commuting is defined as travel between the home of the employee and the address where your company is established or from which your company operates.
Company passenger car
If you provide a passenger car to your employee and the employee also uses this car for private purposes, including for commuting, you must add 15% of the original new value of the car, including general expenditure tax, to the wages.
Important!
- With respect to passenger cars registered in the vehicle registration plate register prior to the effective date of the Belastingwet BES, general expenditure tax also includes turnover tax and import excise duties.
- Commuting kilometres are not corporate kilometres and will be considered private kilometres when answering the question of whether the employee uses the car for private purposes. Commuting is defined as travel between the home of the employee and the address where your company is established or from which your company operates. If the employee takes the passenger car home at your request, for example, to prevent theft or vandalism, this will be considered a provision of a car and the fiscal addition must take place. If the employee is provided with the car in the course of the year, the addition must be determined pro rata. Imagine that the fiscal addition for the private use of the car amounts to USD 2,400 for the entire year, but the employee may only use the car for private purposes for a period of three months in the course of this year. The private use will be 3/12th part of USD 2,400: USD 800. If the employee must pay a fee to you for the use of the car, the paid fee will be deducted from the 15% addition referred to above. Only the costs paid directly to you by the employee can be deducted from the addition. If the employee pays more than the mentioned 15% addition, the benefit will be set at nil. Any excess amount will not be deductible as professional costs for income tax purposes.
Imagine that an employee resides abroad for work for an extensive period of time. The employee returns the car key, car papers, and car to you. During this period, he will not have access to the car. This means that this period will not be considered when calculating the addition. If the employee travels abroad and does not return the car key, car papers, and car to you, the car will remain available to him and the addition must be paid for this period. If you provide the car to another employee for this period, the addition will apply for this part of the year with respect to this other employee.
Commuting
You cannot offer untaxed compensation for commuting. Commuting is defined as travel between the home of the employee and the address where your company is established or from which your company operates.