Cars & mobility

Scale down of electric vehicle benefit
In 2021, a 10% tax credit may be applied to the additional tax liability for the private use of a company car in the case of electric cars and other vehicles without carbon emissions. With a few exceptions, this tax credit is at most €4,500 (calculated on a catalogue value of up to €45,000). As of 1 January 2022, the tax credit drops to 6% and is then at most €2,100 (calculated on a max. catalogue value of €35,000). In 2023, the tax credit is at most €1,800 (calculated on a max. catalogue value of €30,000)

Take note! There will be a further reduction in the tax credit for 2025. The tax credit will then be 5%, being at most €1,500.

Adaptation of the motor vehicle and motorcycle tax (BPM) table
As vehicles increasingly emit less CO2 and the extent of the motor vehicle and motorcycle tax (BPM) is based on these carbon emissions, revenue from the BPM reduces. To counter this reduction, the tax bracket limits have been adjusted. The tax bracket limits for passenger vehicles are to be reduced by 2.3% each year for the period up to 2025, and the tax rates are to be increased by 2.35%. This likewise applies to diesel vehicles. From 2023 onwards, the tax rates will first be indexed and subsequently increased by 2.35%.

Determining the extent of the BPM
BPM is due at the time that a vehicle is registered in the vehicle registration system. The vehicle must then be suitable for use on the road. For example, for parallel imports of e.g. a damaged vehicle, the extent of the BPM depends on the depreciation rate. This percentage may be based on a valuation report drawn up at the time that the vehicle becomes roadworthy. If a tax return is submitted prior to roadworthiness, then depreciation must be based on the statutory age-related table or a price list specifically applied in the trade.

Tip! If it turns out that the roadworthiness will not be used anyway (e.g. because the vehicle is irreparable), then the paid BPM will be refunded.

Transitional provision of BPM rate change
The government will put forward a separate amendment proposal for a transitional provision in the event of a BPM rate change. As from 1 January 2022, the taxable event for the BPM will be brought forward to its registration in the vehicle registration system. Currently, that is still the moment of registration. In the event of a rate change, all new vehicles that have not yet been denominated, must be denominated within two months. If this is not the case, the new rate will apply instead of the old rate that applied at the moment of registration.