Company vehicles - NSSO: the CO2 contribution on 1 January 2021

Indexation of the CO2 contribution on 1 January 2021

The formula for calculating the solidarity contribution payable by employers on company vehicles will be adapted shortly.

On 1 January 2005, a solidarity contribution based on CO2 emissions and payable by the employer was introduced for commercial vehicles. This employers' levy which is calculated on a monthly basis, shall be paid per quarter to the NSSO within the same deadlines as those that apply for the social security contributions for employees.

More specifically, the levy is calculated on the basis of the car's CO2 emission rate and a flat-rate amount that depends on the type of from fuel and is indexed on 1 January of each year. From 1 January 2021, the employer solidarity contribution on company vehicles will be calculated on the basis of the following formula:

Moreover, from 1 January 2021, the amount of the CO2 contribution may under no circumstances be less than €27.54 for non-electric cars.

Example 

An employee is using a company car SKODA SUPERB, 1.6 CRDTI Classic for private ends. The car is equipped with a diesel engine. The CO2 emission rate for this category of cars is 130 g/km.

CO2 contribution from 2021: €62.80 per month ([((130 x 9) - 600) / 12) x 150.84) / 114.08]), or €188.42 per quarter.

CO2 emission to be used from 1 January 2021

As explained in our infoflash of 18 December 2020, until 31 December 2020 only the NEDC value (shown in the table (code 49.1)) is taken into account for the calculation of CO2 emissions.

The NSSO has informed that from 1 January 2021 the CO2 contribution must be calculated according to the same rules as those applied by the tax authorities. 

So from 1 January 2021, the following value must be taken into account when calculating the CO2 contribution:

• the NEDC 1.0 CO2 value when the vehicle only has an NEDC value;
• the WLTP CO2 value when the vehicle only has a WLTP value;
• the NEDC 2.0 CO2 value or the WLTP CO2 value (free choice) if the vehicle has both an NEDC 2.0 CO2 value and a WLTP CO2 value.

If the vehicle has two CO2 emission rates it is best to choose the lowest CO2 emission rate for the calculation of the CO2 contribution.

Source: www.socialsecurity.be