Company cars: reference co2 emissions 2019

If you make a company car available to your employees, a taxable benefit in kind arises when they use this car for private purposes. One of the elements to calculate the taxable benefit for the 2019 income year, the reference CO2 emission, is known.

FLAT-RATE ESTIMATION OF THE BENEFIT

The benefit in kind for making a company car available is calculated as follows:

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

REFERENCE CO2 EMISSION DETERMINES THE CO2 PERCENTAGE

In order to determine the CO2 percentage, the CO2 emission content of the car is compared with a reference CO2 emission. In 2019, these reference CO2 emissions will amount to:

• 107 g/km for cars equipped with petrol, LPG or NG engines;
• 88 g/km for cars equipped with diesel engines.

The base CO2 percentage is 5.5 % for the above reference CO2 emissions. If the emissions of the car concerned are higher/lower than the reference CO2 emissions, the base percentage is increased/reduced by 0.1 % per CO2 gram. The CO2 percentage must be at least 4%. The maximum CO2 percentage is 18%.

AN INCREASE IN REFERENCE CO2 EMISSIONS FOR THE FIRST TIME

For income year 2018, the following reference CO2 emissions apply:

• 105 g/km for cars equipped with petrol, LPG or NG engines;
• 86 g/km for cars equipped with diesel engines.

After years of decrease, the reference CO2 emissions have increased for the first time since the application of the new flat-rate estimation method introduced in 2012. This results in a decrease of the CO2 percentage and consequently also in a decrease of the taxable benefit in kind.

For example:

The employee has a company car with a diesel engine which he may use for private purposes. The CO2 emission of the car is 90 g/km.

The reference CO2 emission for company cars equipped with diesel engines is 88 g/km for 2019. The CO2 percentage for 2019 is 5.7 % (= 5.5 % + [(90 – 88) x 0.1] %). In 2018 the CO2 percentage was 5.9 % (= 5.5% + [(90 – 86) x 0.1] %).

Source: Royal Decree of 19 December 2018 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, 27 December 2018.