Company cars: baseline CO2 emissions 2017

If a company car is made available to workers or company managers, a taxable benefit of all kind originates when the car may be used for private purposes. One of the factors to calculate the taxable benefit for the income year 2017 correctly is now known, namely the baseline CO2 emission.

Lump sum estimate of the benefit

Since 1 January 2012 the benefit of all kind generated by the provision of a company car to a worker or a company manager is calculated as follows:

(List price x degressive coefficient) x 6/7 x CO2 percentage

Baseline CO2 emission determines the CO2 percentage

In order to determine the CO2 percentage the CO2 emission of the car is compared to the baseline CO2 emission. In 2016 the baseline CO2 emissions amount to:

• 107 g/km for cars with petrol, LPG or natural gas engines;
• 89 g/km for cars with diesel engines.

The base CO2 percentage is 5,5% for the baseline CO2 emissions given above. When the emission of the concerned vehicle is higher/lower than the baseline CO2 emission, the base percentage is increased/decreased by 0,1% per gram CO2. The CO2 percentage must be at least 4%. The maximum CO2 percentage is 18%.

Each year the baseline CO2 emissions are laid down by Royal Decree.

Baseline CO2 emissions 2017

The baseline CO2 emissions for the income year 2017 are lower than the baseline CO2 emissions for the income year 2016:

• the baseline CO2 emission for cars with petrol, LPG or natural gas engines is 105 g/km;
• the baseline CO2 emission for diesel cars is 87 g/km.

Example:

The worker disposes of a company car with a petrol engine that he may use for private purposes. The CO2 emission of the car is 120g/km.

The baseline CO2 emission for company cars with petrol engines is 105 g/km for 2017. The CO2 percentage for 2017 is 7 % (= 5,5% + [(120 – 105) x 0,1]%). In 2016 the CO2 percentage is 6,8 % (= 5,5% + [(120 – 107) x 0,1]%).

Source: Royal Decree of 24 November 2016 amending the Royal Decree for the implementation of the 'Code des impôts sur les revenus 1992' with regard to the section of the benefits in kind in the event of free private use of a company car , Moniteur belge 5 December 2016.

Author: Peggy Criel

06/12/2016