Source: mijntipsenadvies.be
When your colleague is provided with a company car and he is also allowed to use that car for private purposes, the company must pay a solidarity contribution (CO2 tax) to the NSSO on it. How much will this CO2 tax be from 2024? And when does the CO2 tax actually apply?
A | When is CO2 tax due?
- Escape is not easy...
If you provide certain colleagues with a company vehicle that they can also drive privately, then you pay a contribution to the NSSO for it. - Also for commuting?
The NSSO assumes that all commuting by your employees is also private. As soon as your employees drive home in their company car in the evening, you must pay this contribution in other words, even if there is no purely private travel. - Also in the case of a camionette?
The NSSO is a bit more lenient on this. Commuting with a vehicle that falls under the tax definition of a light cargo is not considered private use. If your colleagues use an ordinary van only for commuting, this CO2 contribution is not due.
CAUTION!
- It must be a "true light cargo. In concrete terms, this means, for example, a classic van with one row of seats at the front and a cargo space at the back for transporting goods. A pickup truck is also always a real light cargo for tax purposes.
- If your colleagues also use the van for purely private travel, you still have to pay the CO2 contribution.
OUR TIP:
Even for such a van, you are still in a stronger position if you agree on a car policy with your employees. Make sure that private travel is strictly forbidden and link sanctions to it. If the colleague is absent for a long time due to illness, leave, etc., he or she must return the vehicle.
B | How muchCO2 tax do you have to pay?
An indexation of 2.08% is active from Jan. 1, 2024. TheCO2 tax depends on the fuel type andCO2 emissions of the company car. If no emissions are known, they are fixed at 182 g/km for gasoline engines and 165 g/km for diesel engines. The formula for calculating theCO2 tax is indexed each year on January 1 based on the health index for the month of September to be compared with that of September 2014.
For example, the indexation coefficient for calculating the solidarity contribution for 2024 is 1.5359 (= 175.21 / 114.08), where it was only 1.5046 for 2023. Specifically, this means that theCO2 tax will increase by 2.08% (= 1.5359 / 1.5046) in 2024 compared to 2023. Last year, due to high inflation, the increase was 11.25%.
Formulas 2024 CO2 tax for cars purchased no later than June 30, 2023
In practice, it is usually your social secretariat that calculates the solidarity contribution (CO2 tax) and takes care of payment. You can then check the accuracy of the amounts by applying the formulas below for 2024:
Formulas CO2 tax company car in 2024 (on a monthly basis) for cars purchased no later than 30.06.2023
- Diesel cars: ((CO2 emissions × 9) - 600) / 12 × 1.5359If CO2 emissions are not known, it is €113.27/month.
- Gasoline cars: ((CO2 emissions × 9) - 768) / 12 × 1.5359If CO2 emissions are not known, it is €111.35/month.
- Lpg/cng cars: ((CO2 emissions × 9) - 990) / 12 × 1.5359
- Electric cars: €20.83 × 1.5359 = €31.99
Notice! The above formulas are applicable for vehicles ordered before July 1, 2023!
2024 minimum contribution for cars purchased no later than June 30, 2023
The monthly CO2 contribution for 2024 may never be less than €31.99.This is the case for diesel cars with CO2 emissions ≤ 94 g/km, gasoline cars with CO2 emissions ≤ 113 g/km and LPG/CNG cars with CO2 emissions ≤ 137 g/km. Zero-emission vehicles (100% electric or hydrogen-powered) are always subject to the minimum contribution because they have no CO2 emissions.
Example
Thus, for a diesel car (purchased no later than June 30, 2023) with CO2 emissions of 139 g/km, the contribution for 2023 is calculated as follows: ((139 × 9) - 600) × 1.5359 = € 999.87 per year. This results in a monthly CO2 contribution payable by the employer of € 83.32 (€ 81.62 in 2023).
C | New formula for cars purchased AFTER 30 June 2023
Greening Act
The new law on (the greening of) car taxation significantly increases the solidarity contribution for non-emission free cars(fossil fuel cars)purchased AFTER June 30, 2023 to create a deterrent effect!
New formula = 'old' formula × multiplier
For cars purchased AFTER June 30, 2023, the formula is adjusted with a multiplier of 2.25. That factor will gradually increase to 5.50 starting in 2027. Thus, the CO2 contribution will be a significant part of the "total cost of ownership.
The formulas to calculate the 2023 CO2 contribution of cars purchased AFTER June 30, 2023, then look as follows:
Formulas CO2 tax firm car in 2023 (on a monthly basis) for cars purchased AFTER 30.06.2023
- Diesel cars: ((CO2 emissions × 9) - 600) / 12 × 1.5359 × 2.25
- Gasoline cars: ((CO2 emissions × 9) - 768) / 12 × 1.5359 × 2.25
- Lpg/cng cars: ((CO2 emissions × 9) - 990) / 12 × 1.5359 × 2.25
- Electric cars: €20.83 × 1.5359 = €31.99
Example
If the car from our example is not purchased until after June 30, 2023, the monthly CO2 tax is €187.47 (= €83.32 × 2.25)!
Minimum contribution
The minimum amount will also be increased from 2025 to reach €31.15 (indexable) in 2028. This increase does not apply to cars you purchased before July 1, 2023!
Tip!
The multiplier is not applied for commercial vehicles with no CO2 emissions. So for electric and hydrogen cars purchased after June 30, 2023, the minimum contribution will continue to apply (€31.99/month for 2024).
D | Points of attention and tips
- Permanent place of employment
If your colleague does not have a fixed place of employment and does not use his company car privately, the CO2 tax is not due. - Company directors
The CO2 tax does not apply to company cars of directors and company managers with the social status of self-employed. - 100% deductible
The CO2 tax is a solidarity contribution (NSSO) and therefore 100% deductible. - 40-day rule
If your colleague is employed at the same place for at least 40 days during the calendar year, e.g. at a customer's premises, the NSSO considers this to be a fixed place of employment. As soon as the 40 days in one place are reached, regardless of whether those days are consecutive or not, the CO2 tax is due for the entire calendar year!
The AllConnects solution for correct registration of CO2 emissions
AllConnects offers a solution that allows you to accurately and automatically record the CO2 emissions of company vehicles. This allows you to make adjustments where necessary to minimize CO2 tax contributions. Want to know how this technology can help your company comply more efficiently with legal requirements? Feel free to contact us for more information and tailored advice! Call us at +32 3 289 55 35 or connect with us online below!
